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Tuesday, August 9, 2011

8/9/2011 - S&P Downgrades Fannie Mae, Freddie Mac

Source: Cryptogon
They’re just getting started: Muni Market Prepares for Lost AAA Ratings; “Hundreds and Hundreds” of Downgrades.

Via: CNBC:
Standard & Poor’s downgraded the ratings of government-sponsored enterprises Fannie Mae and Freddie Mac Monday, citing their reliance on U.S. government.

Both Fannie and Freddie were lowered to AA+ from triple-A. The Federal Home Loan Banks were also cut to AA-plus.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. As part of a nationalized system, they account for nearly all new mortgage loans. Their downgrade might force anyone looking to buy a home to pay higher mortgage rates.

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