Fannie Mae and Freddie Mac Celebrate New Year’s 2006

Fannie

At Fannie and Freddie, it’s 2006, Jay Cutler doesn’t stink yet, and you can buy a house for no money down!

The Fannie/Freddie 2006 New Year’s Eve celebration kicked off at 7 PM last night at an enormous French country manor home (complete with nanny suite, library, and solarium) in the tony Longwood section of Bethesda, Maryland, which was purchased just last week for $2.3 million by a 26-year-old administrative assistant at Freddie who makes $38,000 a year, is single, has a FICO score of 530 and no other source of income.

Ever since the beginning of December, when Fannie Mae (ticker FNMA) and Freddie Mac (ticker FMCC) offered head-scratching details about their new programs to back mortgages with down payments as low as 3%, it’s been clear that the two government-sponsored mortgage giants had somehow time-traveled to the end of 2005, a time considered by many the peak of the housing bubble.  Said Palmer Aldritch, a professor of physics at the Philip K. Dick Space-Time Continuum Institute at Pontiac University, whom many academics regard as the nation’s leading authority on time travel: Continue reading