Get Inman via Facebook Messenger
Our top headlines delivered once a day.
by CareyBot

Investors continued to dump shares of Fannie Mae and Freddie Mac this week amid growing fears that the government will be forced to bail the companies out. While a bailout could wipe out shareholders and be costly to taxpayers, it would allow the mortgage finance companies to continue purchasing and guaranteeing loans.To avoid a bailout, Fannie and Freddie must refinance $223 billion in bonds that are coming due at the end of September, Bloomberg reported. Investors are still willing to finance both companies' debt by purchasing bonds -- which, unlike common stock, will not be worthless in the event of a government bailout. But Fannie and Freddie are paying higher returns on the bonds, increasing the cost of "rolling over" their debt.Freddie Mac said it priced the sale of $3 bill...