Lenders, Mortgage-Backed Bond Packagers May Eat As Much As $30B In Crappy Loans Owned by Fannie, Freddie, Says Regulator

Bloomberg News reports:

• Fannie Mae and Freddie Mac’s regulator may identify as much as $30 billion of debt included in mortgage bonds that the companies can force sellers to repurchase, according to Joshua Rosner, an analyst who in 2007 predicted the collapse in the market for the securities.

• The Federal Housing Finance Agency this month said it issued 64 subpoenas seeking loan files and other documents related to so-called non-agency mortgage securities bought by the two government-supported companies. The U.S. is trying to determine whether misrepresentations might require issuers to repurchase debt, producing funds from firms that may include Wall Street’s largest banks to help repay taxpayer money.

For more, see Fannie Subpoenas to Show $30B Bad Mortgages, Rosner Says.