So While Every Bank Is Defending PrimeX, Here Is What Fannie Mae Really Thinks

Remember when it was your job to be cheerful and optimistic if creating forecasts for insolvent and nationalized entities, whose entire pseudo-business model is predicated upon the return of the housing bubble and the overall Ponzi resuming? Apparently not, especially if one has read the following forecast from none other than Fannie Mae. So while we have Barclays, Deutsche, JPM, TCW, and any other axed bank , you name it, defending PrimeX which is nothing more or less than a bet on the "safe" tranche of US home price prospects and housing overall, here is the one entity with more mortgages on its books than any other organization, telling us how it really feels.

Summary:

  • Projecting 10yr treasuries to plunge to 1.90% by 4Q11
  • Median New / Existing home prices will fall 7.1% / 7.7% respectively by mid 2012
  • Purchase Mortgage Origination will decline 21.5% from 2Q11 levels
  • Total Single family mortgage debt will decline 3.0% by 4Q12
  • First Lien single family mortgage debt will decline 2.3%
  • The imputed (based on reported first lien & total) 2nd lien mortgage debt will plunge 10.2% vs. 2Q11 levels (hmm why W
  • Would somebody with a first lien allow a junior creditor to get paid off first?)

Full breakdown

Source: Fannie Mae

h/t John Poehling

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