February 26, 2011
Fannie, Freddie narrow losses but seek more aid
Associated Press
By Marcy Gordon
WASHINGTON-Government-controlled mortgage buyers Fannie Mae and Freddie Mac narrowed their losses in the final three months of last year. But they are asking for more money from taxpayers as the real estate market braces for what could be a new wave of mortgage defaults.
...Richard Green, who directs the University of Southern California's Lusk Center for Real Estate, said losses from soured mortgages are declining fairly substantially as risky home loans made in the run-up to the housing bust work their way through the system.
"A lot of the bad stuff already has gone bad," Green said. "In order to have a recovery you've got to get rid of these toxic loans."