Top Stories
(2008-09-06)
This May 2, 2007 file photo shows the Fannie Mae building in Washington. The U.S. Treasury and the Federal Reserve announced steps Sunday, July 13, 2008 to shore up mortgage giants Fannie Mae and Freddie Mac.
(AP Photo / Manuel Balce Ceneta, File)
The Associated Press has learned that the federal government plans to take over embattled mortgage lenders Fannie Mae and Freddie Mac as soon as this weekend.
A person who's been briefed on the matter says the deal is expected to include the departures of both CEOs.
Top regulators including Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson met with the lenders' top executives Friday afternoon and informed them of the government's takeover plan in a process known as conservatorship.
Fannie Mae and Freddie Mac are the biggest buyers and backers of mortgages in the nation, with combined holdings or guarantees of 5 trillion dollars. But between April and June, they lost more than 3 billion dollars, half of it in risky loans that saddle the borrower with escalating payments.
Critics of an open-ended rescue plan OKd by Congress this summer have said it could expose taxpayers to billions of dollars in potential losses.
© Copyright 2012, Associated Press
