On October 21, 2010, Federal Housing Finance Administration laid out three distinct scenarios of how much U.S. needs to pump into Fannie Mae and Freddie Mac in addition to $148b the government had funneled to the two quasi government agencies since their seizure in 2008.
Scenario I: This scenario assumes that the economic situation will deteriorate. The companies need $215b more from the government, and will return $104b, including $13b already paid. The total cost to taxpayers is $215b + $148b - $104b = $259b.
Scenario II: This scenario assumes that housing prices fall and then recover. Under this scenario, both companies need $90b in additional aid and they will return about $84b, including $13b already paid. The cost to taxpayers is $90b + $148b - $84b = $154b.
Scenario III: This sscenario assumes that housing prices will stay flat for the next three years. Under this scenario, government needs to pump in an additional $73b. They will return $80b, including $13b already paid. Total cost to taxpayers is estimated $141b.
Together the companies received $187 billion in taxpayer money. Both companies--Fannie Mae and Freddie Mac--reported profits on November 7, 2013, helping repay the government almost all of the money due. Fannie announced that it made profit of $8.7 billion in the third quarter, and would pay $8.6 billion to the treasury, paying off a total of $114 billion. Freddie on November 7, 2013 announced profit of $30.5 billion for July-September quarter, and would send the treasury $30.4 billion and would have paid in full of its $71.3 billion in due.
Fannie-Freddie Plan Unveiled
An emerging plan in Congress on how Fannie Mae and Freddie Mac should work to avert a 2008-type of economic crisis is in the process of getting final touch, according to a Los Angeles Times report carried by The Dallas Morning News on March 12, 2014. The plan includes measures, not detailed enough until now, that will reduce gradually the government role in mortgage industry. The plan reached between Senate Banking Committee Chairman Tim Johnson, D-SD, and committee's ranking Republican Sen. Mike Crapo of Idaho builds on a bipartisan draft unveiled last year (2013) by Sen. Bob Corker, R-TN, and Sen. Mark Warner, D-VA, and co-signed by five Democrats and five Republicans, and calls for companies that underwrite and issue mortgage-backed securities to have 10 cents in reserve for each dollar in mortgage.
Scenario I: This scenario assumes that the economic situation will deteriorate. The companies need $215b more from the government, and will return $104b, including $13b already paid. The total cost to taxpayers is $215b + $148b - $104b = $259b.
Scenario II: This scenario assumes that housing prices fall and then recover. Under this scenario, both companies need $90b in additional aid and they will return about $84b, including $13b already paid. The cost to taxpayers is $90b + $148b - $84b = $154b.
Scenario III: This sscenario assumes that housing prices will stay flat for the next three years. Under this scenario, government needs to pump in an additional $73b. They will return $80b, including $13b already paid. Total cost to taxpayers is estimated $141b.
Together the companies received $187 billion in taxpayer money. Both companies--Fannie Mae and Freddie Mac--reported profits on November 7, 2013, helping repay the government almost all of the money due. Fannie announced that it made profit of $8.7 billion in the third quarter, and would pay $8.6 billion to the treasury, paying off a total of $114 billion. Freddie on November 7, 2013 announced profit of $30.5 billion for July-September quarter, and would send the treasury $30.4 billion and would have paid in full of its $71.3 billion in due.
Fannie-Freddie Plan Unveiled
An emerging plan in Congress on how Fannie Mae and Freddie Mac should work to avert a 2008-type of economic crisis is in the process of getting final touch, according to a Los Angeles Times report carried by The Dallas Morning News on March 12, 2014. The plan includes measures, not detailed enough until now, that will reduce gradually the government role in mortgage industry. The plan reached between Senate Banking Committee Chairman Tim Johnson, D-SD, and committee's ranking Republican Sen. Mike Crapo of Idaho builds on a bipartisan draft unveiled last year (2013) by Sen. Bob Corker, R-TN, and Sen. Mark Warner, D-VA, and co-signed by five Democrats and five Republicans, and calls for companies that underwrite and issue mortgage-backed securities to have 10 cents in reserve for each dollar in mortgage.
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U.S. 3.8 million Short on Homes
A Up for Growth study released on July 15, 2022 shows that the U.S. is having a home availability crisis. At present, Up for Growth estimates, U.S. is facing a housing shortfall of 3,779,410 homes in 2019. Texas ranks only second after California, with the need easily touching at least 322,105 in 2019.
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