CBO's Budgetary Treatment of Fannie Mae and Freddie Mac

CBO’s Budgetary Treatment of Fannie Mae and Freddie Mac, January 2010 – Background Paper

“After the U.S. government assumed control in 2008 of Fannie Mae and Freddie Mactwo federally chartered institutions that provide credit guarantees for almost half of the outstanding residential mortgages in the United Statesthe Congressional Budget Office (CBO) concluded that the institutions had effectively become government entities whose operations should be included in the federal budget. As a result, CBO incorporated estimates of the budgetary costs of the two entities in the baseline budget projections it published in 2009. This background paper describes CBOs budgetary treatment of Fannie Mae and Freddie Mac and the methods CBO used to estimate their costs.”

CBO's Budgetary Treatment of Fannie Mae and Freddie Mac

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