Following Fannie's Record Delinquencies, Freddie Just Reported New Record For Loans Seriously Delinquent

Tyler Durden's picture

Yesterday we noted that Fannie just announced a record number of delinquencies at 5.52%. Today, not to be outdone, Freddie follows up and discloses that total delinquent loans also hit another fresh high of 4.08%, an increase from January's 4.03% and double the 2.13% from last February. Also yesterday we noted that CMBS delinquencies are likely in the 6-7% range, as both the residential and commercial real estate market continue experiencing unprecedented weakness.

Also, as reader Tin Cup points out, "The credit enhanced book of business (loans insured by the private mortgage insurers) also hit a record high or 8.59%, up from 8.52% in January (and also double last year’s 4.54%).  Again, despite trillions being throw at the housing market, delinquencies continue to rocket upwards."

Sure enough, the market continues to ignore all negative news and just focuses on the direct consequences of a waning fiscal and monetary stimulus program.

Full report


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Blithering ORSA's picture

Relax, nothing is kfuced!  Delinquent is such a judgemental term.  I like differently credit-worthy better.  Loaning to these people gives an institution a credit profile that truly looks like America! 

Calculated_Risk's picture

Credit Challenged.

Temporarly Credit Inflexible

SheepDog-One's picture

Record high delinquencies, record hi foreclosures and unemployment, inventories maxed higher than bubble top, hmm guess its all a clear sign stocks and oil are due for a huge upward surge!

Jeff Lebowski's picture

Please, Tyler...  Less articles on irrelevant data like this and more on mainstream events that can make markets.

Who should win American Idol?

What's your favorite iphone app?

Team Jacob or Team Edward?


Cognitive Dissonance's picture

Data? Irrelevant data? I'll give you irrelevant data. When the Germans bombed Pearl Harbor..........

BTW, my American Idol is Tyler. He can sing like a canary in a coal mine. We shall know the end is near when he is silenced.

Jeff Lebowski's picture

Has the whole world gone crazy? Am I the only one around here who gives a shit about the rules? Mark it zero!

Cognitive Dissonance's picture

Has the whole world gone crazy?

Sadly yes. But it started long before this or even the last President. This is just a phase shift to the end game.

Am I the only one around here who gives a shit about the rules?

Because we are in the end game, there is only one rule. The Golden Rule.

Mark it zero!

Agreed.........Dude. :>)


deadhead's picture

thanks for the continual updates Tyler....looks like main stream media has the full court press on to simply avoid any news that can be deemed negative.


this is playing out more like the 1930s every day.


I repeat that people are dropping off extended unemployment benefits (they simply won't be counted as anything) like mosquitoes hitting the citronella candle.  46,000 in NY drop off this week as they have hit the maximum 99 weeks.  second leg, double dip is coming up fast.  wait til the market starts looking past a 15 minute chart and takes a gander a few months down the road into the future......bernanke has set up an echo bubble just waiting to tank.  nice job phucknut.

Leo Kolivakis's picture

And yet this suckers are on a tear:


SheepDog-One's picture

Yep Leo, thats the FED's latest lame-game, all SMALL CAPS are perfect pump fodder for the FED, pump some of this junk a buck and look at the index rise % they can print! YOWZA! Freakin magic, man!

sweet ebony diamond's picture

How do we verify this data? Big 4 audit?

Where is the line item "# of squatters"?

What are the plans for houses under control of Fannie & Freddie?

Is this the free market Bush keeps talking about?

Assetman's picture

It's good to know that when you rely on the existence of blackholes to suck the life out of you, Fannie and Freddie are there to supply all the data (and sucking) you need.

Nice work, fellas!

Justin Credible's picture

Who cares?!  The iPad is coming out - buy, buy, buy!

trav7777's picture


The delinquencies keep rising because the UE check ain't enough to pay the mortgage, and paying mortgages is so 2005

docj's picture

And this is why they have to keep-up the mark-to-fantasy, extend-and-pretend ponzi going at all costs.  They know damn well that none of these delinquencies are going to "heal" in any meaningful way, but neither can they take a 11-figure (12-figure??) hit on their balance sheets, so you let the "owners" squat (they can then in turn use their mortgage cash to buy their iPoop) and pray nobody says "Enough!" and turns the lights on.

It's really the only play they have left.

Buck Johnson's picture

Your spot on, thats whats going on.  They can't take a hit like that and they couldn't cover a hit like that if they wanted to, so what they do is extend and pretend.  Hopeing that somebody anybody finds the "magical" formula that makes crappy debt into gold overnight.

Racer's picture

 In this Hopium market, you just need to buy junk and you will pick a winner everytime guaranteed. Forget about such matters as jobs, earnings, valuations or anything like that, this is the bigger and better dotcom Mk II.

Nasdaq 15,000 here we come.... by the end of the month

trav7777's picture

Wrong.  Just flat effing wrong.

In this market, you have to *avoid* stocks with good balance sheets and strong dividends.  You have to buy the most bankrupt issues, those who have massive CRE exposure, or who are paying dividends in stock.  Those are your big winners.

lol lol lol

The weaker the balance sheet, the stronger the gains hahahahahaha

Blithering ORSA's picture

So a goos CEO urinates on his own balance sheet to attract a larger bailout?

Bob's picture

What could possibly suit the purposes of the banksters more beautifully?  They packaged all this trash, sold it, bet on it--which is where the real monumental systemic risk originated--cashed out their profits, blackmailed the taxpayers into bailing them out before cashing in again . . .

Now they'll point the finger at Fannie and Freddie, the gov (not Greenspan, but Barney Frank, et al) and the fucking poor as the real problem all along as this shit ripens . . .

And there's just enough stupidity and class envy/hatred for the poor (and thy "irresponsible" middle class neighbors) to make it work. 

Wish I didn't see it coming. 

Cognitive Dissonance's picture

Exactly. Always use leverage against your opponent. Because the public is willingly and woefully ignorant, leverage that for your own gain. Ugly, immoral and highly profitable, particularly when you've got the powers-that-be in on the

The fleecing of the peasants is an old game refreshed by modern technology.


Bob's picture

Never underestimate the power of envy and hatred within the "social" human animal.

Gotta admit, though, that cynical as I am, I've been surprised to hear all the venom vented by people against their "irresponsible" middle class neighbors.  The poor, yeah, I know how people envy/hate them, but their own middle-class kind? 

But I suppose if there weren't an innate compulsion for us to have the strongest feelings for those closest to us, there would be no need for Ten Commandments to guide us, particularly with respect to our neighbors.  

Fucking banksters must be just lovin' it. 

Cognitive Dissonance's picture

When you've been conditioned to believe you can't fight city hall, all you have left is to beat your neighbor over the head and burn to the ground the mom and pop convenience store across the street, resulting in the need from now on to walk 2 miles for milk and bread.

First you cut off his balls, then you show him his balls, then you place those balls in his neighbors hands. Since he's unwilling to look within himself to understand why he allowed himself to be neutered in the first place (we won't even discuss why he paid for the knife and cab fair to the neutering) he's got to blame someone else for his submissive behaviour. 

It's worked for 4,000 years so why stop now. This is all voluntary folks, it's all voluntary. The door to the jail cell is unlocked and we can leave at any time. We enable our own destruction.

Bob's picture

You're right.  Things may soon reach a point where those educated and fortified by blogs will have to "de-lurk" wrt concrete reality and gather people together in real time & space. 

Cognitive Dissonance's picture

I nominate Bob to lead. Nomination seconded and passed unanimously.

Would you like to say a few words to your adoring mob Bob?

Bob's picture

I'll be right there, guys!  But for now, please allow me to introduce to you my Opening Act, CD!

How 'bout a nice round of applause?

It's all for you, the fans. 

Reflexivity's picture

Never underestimate the power of envy and hatred within the "social" human animal.

"All men are on the same quest: The Quest for Power."  -- Nietzsche, Thus Spoke Zarathustra

Bob's picture

Love the Symphony!

The jungle, not so much.  I'd like to think we have "higher" faculties to which we might resort, kinda the "better angels of our nature" idea.  Perhaps just a reasonable balance would be good enough, it seems to me. 

ghostfaceinvestah's picture

"Again, despite trillions being throw at the housing market, delinquencies continue to rocket upwards."

I have to disagree with that statement.  I would say "because" of the trillions thrown at the market.

The government has done a wonderful job of encouraging people to default.  Guaranteed if the banks had just foreclosed in a timely manner, there would be a lot less people on the "free rent" gravy train.

Bob's picture

GFI, why the rage at thy neighbor?  Sounds like we should line 'em up with the executives of GS, et al . . .

rawsienna's picture

The sad reality is that all the losses will be pushed onto the taxpayer thru the FHA - while the head of FHA/GNMA continues to lie to congress about the true extent of the potential losses at that agency.  While the problems at FHR/FNM are well known, how many in the media/congress are focussing on the fact that the OBAMA administration is using the FHA as the instrument to shift housing losses and subsidies to the tax payer. As a recent report form Barcley's indicated, base case losses at FHA should be around 100bb.  Considering that the FHA book of business is 1/5th the size of FN/FH, that is a very big number. 

rawsienna's picture

In fact, according to that report, the current business being written will lose money according to Barcleys.  In other words, we (taxpayers ) are paying for peoples homes.

Cognitive Dissonance's picture

Shit, since I'm paying, another round of drinks for the ZH boys. On Bob over there.

Bob's picture

Anything for you, Mr. CD!  I am your greatest fan. 

ghostfaceinvestah's picture

I can't see how it couldn't lose money - at 3.5% down you are effectively underwater at closing, and even if house prices stay flat for a few years your amortization is tiny, so the first sign of trouble and you have no equity to fall back on.

And I read somewhere that 40% of FHA buyers put down the minimum.

Pure theft from the taxpayer.

Bob's picture

". . . we (taxpayers ) are paying for peoples homes."

That, I would add, after we bought new yachts, private islands, G-V's, and the world's hottest honeys for the guys who put the entire deal together. 

"Buying homes" for regular people will be the least of it. 

MarketTruth's picture

So you mean all that $1T+ the Fed purchased is now worth less?

It time to end the Fed.

Amish Hacker's picture

"current business being written will lose money..."

Exactly, and that's why the $200B Fannie/Freddie support limit was raised to infinity, so that new losses could be covered as well as the older "legacy" losses.

Notice how this change was announced on Christmas Eve, while the public slept. Good mass psychology, but the timing was also important for legal reasons. The original conservatorship agreement allowed Treasury to amend the terms without Congressional involvement until Dec 31. ( If they had waited another week, Congress would still be meddling and asking a lot of damn fool questions, and what would that have done to investor confidence in the immortality of the GSE's?

Bob's picture

Considering the impact failure to do it would have had on "consumer confidence," they had to do it.  The much larger ponzi would have more quickly failed. 

Any thoughts about why some people are so geeked about a few individuals getting a "free ride" when they hit had times as opposed to the people who used it to effect a coup of our government by means of the problems they set up, i.e., Wall Street and its friends?

rawsienna's picture

The 2009 GSE bookof business will not lose money.  It is 70ish ltv with 750 fico. In other words it is properly underwritten.  ALl the other stuff is being underwritten by FHA where 95% of all 2009 loans have ltv over 90. 

I have no problem with "a few" people getting help .. I do have  a problem with the govt knowingly writing new mortage guarantees that will lose money

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