FHFA IG – Fannie Mae and Freddie Mac: Where the Taxpayers’ Money Went

Fannie Mae and Freddie Mac: Where the Taxpayers’ Money Went, White Paper 2012-02, Evaluation Report 2012-XX. May 24, 2012

  • “Freddie Mac owned or guaranteed mortgages worth more than $5 trillion, nearly half of the U.S. mortgage market. They did not have adequate capital reserves to continue operating in the face of the growing losses on their mortgage portfolios…U.S. government intervention protected the numerous creditors – both domestic and foreign – who had purchased bonds and MBS issued by Fannie Mae and Freddie Mac. Allowing the Enterprises to meet their debt and guarantee obligations enabled them to continue to support the secondary market. However, the cost of rescuing the Enterprises has been high, with total Treasury support for the Enterprises currently expected to range from a quarter to a third of a trillion dollars.”
  • See also FHFA OIG Semiannual Report to the Congress – October 1, 2011, through March 31, 2012.
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