| Fannie Faces Trouble From Mortgage Insurers
The private mortgage insurance industry is under severe pressure from rising delinquencies and mounting losses. Now questions are swirling about how a potential blow-up in that sector will affect Fannie Mae (FNM - Cramer's Take - Stockpickr). As the largest purchaser of U.S. mortgages, Fannie Mae provides an essential backstop to the housing market. The government-sponsored entity, like its brother Freddie Mac (FRE - Cramer's Take - Stockpickr), purchases mostly standard 80% loan-to-value mortgages -- those for which the homebuyer puts down 20% equity. Due to a quirk in its charter, Fannie Mae is allowed to purchase mortgages with loan-to-value, or LTV, ratios greater than 80% -- and as high as 100%. Generally, these are allowed only if the homeowner purchases mortgage insurance to cover the amount of the loan above 80%.
Stocks close down despite stimulus plan
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July 2006
The U.S. Department of Energy has signed a $27 million contract with GE for this development. The advanced wind system concepts will include innovative foundations, construction techniques, rotor designs and electrical components designed for use in the ocean’s harsh environment [7]. So the question remains. How far in the future will these research and development projects become realistically competitive with shallow water projects? History is replete with promising technologies that have taken decades to commercialize. For example the evolution of the transistor to large scale integrated circuits of today has taken 50 years. Photovoltaic cells have existed since the early 1900s and have yet to evolve into competitive large scale energy sources. It is simply conjecture to answer the question of "how long?" for deep water wind.
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