'Severe' weaknesses for Fannie and Freddie

Shocker! Fannie Mae and Freddie Mac are still in trouble:

Fannie Mae and Freddie Mac, charged with helping lead the nation out of its housing crisis, are facing "critical" financial problems, federal regulators said Monday.

The companies suffer from severe financial, operational and compliance weaknesses, the Federal Housing Finance Agency said a report to Congress detailing its annual examinations of the firms. Taken over by the government in September, Fannie and Freddie are not able to operate without federal assistance. ...

Fannie and Freddie play a vital role in the national housing market, accounting for a combined share of 73% of mortgage originations in the second half of 2008. They also serve central roles in the Obama administration's foreclosure prevention plan.

The Obama administration is forcing these companies to issue the vast majority of this country's new mortgages—at some of the lowest interest rates in history—while housing prices are still falling. I doubt this is good for Fannie and Freddie's financial health in the long run. I expect these companies to keep sucking up your tax dollars as President Obama pats himself on the back for "doing something about the housing problem."