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Why Freddie Mac Chief Ended It: Prime Mortgage Meltdown

"Here It Comes" (Prime Delinquencies)

I and others have for nearly two years said that "subprime" was going to be a side show compared to both ALT-A and "Prime" delinquencies on mortgages.

All I can say now is: it's starting.

April 21 (Bloomberg) -- Fannie Mae and Freddie Mac mortgage delinquencies among the most creditworthy homeowners rose 50 percent in a month as borrowers said drops in income or too much debt caused them to fall behind, according to data from federal regulators.

The number of so-called prime borrowers at least 60 days behind on mortgages owned or guaranteed by the companies rose to 743,686 in January, from 497,131 in December, and is almost double the total for October, the Federal Housing Finance Agency said in a report to Congress today.

Of all borrowers who ended up in default, 34 percent told Fannie and Freddie they were earning less money, about 20 percent cited excessive debt as a reason for missing mortgage payments, and 8.1 percent blamed unemployment, FHFA said.

Uh huh.

It isn't over either.


Perhaps in response to this, Freddie Mac's acting head apparently has committed suicide:

Police responded to the Kellerman home after receiving a call from his wife.

Kellermann was 41 years old.

He was named Acting Chief Financial Officer of Freddie Mac in September of 2008. According to Freddie Mac's web site, he had been with the company for over 16 years.

That's sad, but what's at least as equally sad is the number of Americans who have been screwed out of everything, including their homes, over the previous eight years. Who did the screwing?



Freddie Mac Chief David Kellerman Commits Suicide

NEW YORK (WCBS 880 / AP) -- Farifax, VA police tell CBS TV affiliate WUSA in Washington DC the acting head of Freddie Mac, David Kellerman, has committed suicide.

David KellermanKeep reloading for more on this story as it comes into the WCBS 880 newsroom.

READ: More Deaths in the News
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Police responded to the Kellerman home after receiving a call from his wife.

Kellermann was 41-years-old.

Sabrina Ruck, a Fairfax County police spokesman, confirmed to the AP that Kellermann was dead, but she could not confirm that he committed suicide despite WUSA reporting that Fairfax police told them it was a suicide.

Kellermann's death is the latest blow to Freddie Mac, a government controlled company that owns or guarantees about 13 million home loans. CEO David Moffett resigned last month.



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For those of you who believe in an afterlife,

You might wonder if David Kellemann is now hanging around with Vince Foster.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.

SteveMT's picture

And also Jimmy Hoffa.

What a three-some.

The best way for Americans to revolt without violence is by

way of the pocketbook. The banksters, mainstream media, facist corporations and the beltway stooges in all their pockeks, screwed the American people. Protests are useless and more often than not used against us. The only way to change what is happening is to severe their lifeblood.....profit.

What would happen if ALL Americans STOPPED paying their mortgages?

That would be a revolution.

Yep, cut them off

My family is moving off the grid this weekend. House is gone, commercial property gone, now we are gone. Sort of. Still keeping the business. We will keep our money local and never have debt again. The game is over for those crooks. Ron Paul hit the nail on the head during the CNN interview. "Ignore them".

You're still thinking we live in a Free Market

You look at the CFR and other committee lists and it's full of all the Fortune 500.

These people have so much money that they could reinvent themselves into a 1000 new companies, but they'd still be in control.

If everyone stopped paying their mortgages the banks would just get a bailout and they would rework the system to be more socialistic.

It's all about control -- money is just one of the many tools to enslave you.


Glen Beck -- An Exposed Enemy:
Glenn Beck Supports NAFTA and taking your job:


Glen Beck -- An Exposed Enemy:
Glenn Beck Supports NAFTA and taking your job:

You shouldn't copy the

You shouldn't copy the entire article as that is copyright infringement. Credit should clearly be given where it is due, and while you included the link, you should also direct the traffic to their site out of fairness.

Besides, these are the posting guidelines for DailyPaul for legal reasons.

Excellent articles, though.

SteveMT's picture

Done Khomar: I'll try to keep remembering that.

I like to be complete. I'm anal retentive sometimes. Thanks.