Both Freddie and Fannie Post higher delinquencies

Both Fannie Mae and Freddie Mac have posted considerably higher defaults for loans. Fannie Mae, which lags in it's reporting one month behind Freddie, reported a sharp jump in delinquencies in November up to 5.29%, up from 4.98% in October and up from 2.13% in November of 2008. Freddie Mac reported delinquencies up to 3.87% in December 2009 from 3.72% in November and up from 1.72% in December of 2008. These figures are from the "Calculated Risk" newsletter Blog, and are concrete evidence of the vast problems ahead for these mortgage giants.

What this shows is that defaults have more than doubled from 2008 and the forecasts for 2010 are these defaults are going to go higher still, possibly doubling from these last reported levels. Despite the media reports of stabilization of the housing sector, this is a serious contradiction to the belief that housing market has stabilized.

Loan loss estimates for the pseudo Federal Companies are staggering, into the Trillions of dollars and although the President has stated he wants more loan modifications, the pace of relief for troubled homeowners is far out paced by the rising delinquencies. More of "We are here from the Government and we are here to help", which is just political rhetoric.

Fannie and Freddie need to retool, be revamped or better yet be eliminated before they further strain this troubled economy. No matter how you spin this, the worst, I'm afraid, is yet to come.