Fannie Mae seeks $8.4B in aid after 1Q loss

WASHINGTON – May 10, 2010 – Fannie Mae has again asked taxpayers for more money after reporting a first-quarter loss of more than $13 billion.

The mortgage finance company, which was rescued by the government in September 2008, said it needs an additional $8.4 billion from the government to help cover mounting losses.

Fannie Mae says it lost $13.1 billion, or $2.29 per share, in the January-March period. That takes into account $1.5 billion in dividends paid to the Treasury Department. It compares with a loss of $23.2 billion, or $4.09 a share, in the year-ago period.

The rescue of Fannie Mae and sister company Freddie Mac is turning out to be one of the most expensive aftereffects of the financial meltdown. The new request for aid will bring Fannie Mae’s total to $83.6 billion. The total bill for the duo will now be nearly $145 billion.

Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Freddie and Fannie, lifting an earlier cap of $400 billion.

Fannie and Freddie play a vital role in the mortgage market by purchasing mortgages from lenders and selling them to investors. Together the pair own or guarantee almost 31 million home loans worth about $5.5 trillion. That’s about half of all mortgages.

The two companies, however, loosened their lending standards for borrowers during the real estate boom and are reeling from the consequences.

With the housing market still on shaky ground, Obama administration officials say it is still too early to draft any proposals to reform the two companies or the broader housing finance system.

But Republicans argue the sweeping financial overhaul currently before Congress is incomplete without a plan for Fannie and Freddie. They propose transforming Fannie and Freddie into private companies with no government subsidies, or shutting them down completely.

The legislation “touches nearly every corner of the economy,” Alabama Sen. Richard Shelby said in the GOP weekly radio and Internet address over the weekend. “But these major contributors to the crisis are left unscathed,” he added, singling out Fannie Mae and Freddie Mac.

Copyright © 2010 The Associated Press, Alan Zibel, AP real estate writer

Steve Geving
Premiere Plus Realty
239-573-1400
Steve@nextgenerationrealtygroup.com
www.nextgenerationrealtygroup.com

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Businesses Already Hurt By Oil Spill

 No oil yet but businesses already hurt

TALLAHASSEE, Fla. – May 7, 2010 – Florida remains the white-sand wonder that has attracted tourists for decades, but even the threat of oil-soaked beaches or the waters that sculpt them is costing Florida businesses millions, representatives of Florida hospitality industry said Thursday.

Faced with a bump in cancellations brought on by fears that a BP oil spill will make landfall along Florida’s Panhandle, motel owners, charter fishing captains and restaurateurs asked tourists to keep their vacation plans intact while calling on government officials to keep the pressure on the company to make due on earlier promises to pay “all legitimate claims.”

What’s unclear is what “all legitimate claims” means.

“It’s easy for a hotel to say this is how many rooms canceled, but how does a cleaning company estimate how many clients they didn’t get because of this,” said Meg Peltier, President of the Gulf Breeze Chamber of Commerce.

Of more immediate concern, however, is what to do about the economic bleeding that has already occurred. Imprecise media reports are making matters worse for the state’s top industry, which will suffer regardless of whether oil ever meets the shore.

Kevin Begos, a seafood industry spokesman in Apalachicola, said the spill has definitely affected the marketplace, even though there’s no oil anywhere nearby yet. He said seafood dealers in his area have seen orders drop considerably.

“Right now, it’s mostly fear, because oil hasn’t come here yet,” Begos said. But that doesn’t mean it isn’t being felt in the wallets of fishermen, oystermen and shrimpers who work the Apalachicola Bay.

“The question becomes: Would BP pay for if it impacts your business even if oil doesn’t come here?” said Begos, who is the director of the Franklin County Oyster & Seafood Task Force.

Other marine-based businesses are seeing the same thing. Capt. John Rivers, owner of Mega Bites Inshore Charter in Gulf Breeze, said earlier this week that all of his bookings for June have already canceled despite the fact that he doesn’t take his charters within 100 miles of the affected area. In the charter business, word travels fast and in this case that’s not helping matters.

“This could easily cost me all the rest of my 2010 business,” Rivers said. “If the oil damages the nurseries, 2011 won’t be any better. I’m already looking for work.”

Meeting in Pensacola Beach Thursday, hospitality industry officials said they’re doing all they can to bring skeptical travelers back while assuring others to keep their Florida plans.

Some timeshare and beach rental companies are waiving the customary 14-day deadline vacationers need to cancel reservations without losing their deposits. Some are also now posting daily photos to show potential clients how the beaches look each day. The strategies appear to have reduced the rate of cancellations.

“Being honest with our customers is working,” said Park Brady, CEO, ResortQuest, a booking agency with thousands of listings in the Panhandle.

Lawmakers say the spill is having an impact on areas not immediately affected by the oil spill.

Foreign tourists, especially, are skittish because of the time and expense of international travel.

Also, to tourists not familiar with Florida geography, what happens in the Panhandle may be indiscernible from what happens in Orlando, though the two destinations are more than 400 miles apart.

“For foreign tourists, when they hear something is happening in Florida, it’s happening in Florida,” said Rep. Rich Kriseman, D-St. Petersburg. “It’s not happening just in the Panhandle or just in southwest Florida.”

Anticipating further job losses, Gov. Charlie Crist on Thursday requested $50 million in federal funds to pay unemployment claims brought on by the oil spill. Though BP is ultimately responsible, Crist urged President Barack Obama to approve the measure so the state can help assist affected workers while it waits for the company to reimburse.

“Such engagement is urgently needed to ensure a comprehensive state and federal response,” Crist wrote in his request for federal aid.

Source: News Service of Florida, Michael Peltier

 Steve Geving
Premiere Plus Realty Co
239-573-1400
Steve@nextgenerationrealtygroup.com
www.nextgenerationrealtygroup.com

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Estero Fl Real Estate

Estero was established and incorporated by followers of Dr. Cyrus Reed Teed.  He proposed a theory called Koresham Unity which says that “we live on the inside of the Earth’s outer skin, and that celestial bodies are all contained inside the hollow earth.  In 1894, followers purchased and occupied a 320 acre parcel of land where they lived communally and prospered in business and politics.  In 1904 the town of Estero was incorporated.  

Though those days have long passed, the Koreshans’ original tract is now owned by the State of Florida.  The Koreshan State Historic Site is a popular place to visit.   

Today, Estero is a small modern paradise consistiing of 56 sq. miles.  It is located south of Fort Myers and north of Bonita Springs.

When you arrive in Estero, you can shed your worries and enjoy the pristine beaches, beautiful sunsets and relaxing gulf breezes. Estero is an escape like no other.

People are drawn to Estero for its shopping, dining, schools and relaxed lifestyle. People stay in Estero for its museums, art galleries and unlimited recreational opportunities. 

Estero has a nice inventory of homes for sale.  The prices are reasonable and the quality of construction is good.  Estero homes for sale don’t last long.  

If you enjoy year round sunshine, golf, tennis, biking and of course the beach, then Estero may be your final destination.

Steve Geving
Premiere Plus Realty Co
239-573-1400
www.nextgenerationrealtygroup.com

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