FHFA: Fannie Freddie Bailout May Cost Another $215 Billion
Another quick update here:
According to a Washington Post article by Zachary Goldfarb, government sponsored entities Fannie Mae and Freddie Mac may require an additional $215 billion in taxpayer funds from the U.S. Treasury. The article estimates that the GSEs may need between $221-$363 billion through 2013.
Fannie and Freddie have already been the recipient of about $150 billion from the taxpayers in order to stave off insolvency. The GSEs were seized by the Federal Government and put under Federal Housing Finance Administration conservatorship, where they remain today.
Earlier today, the FHFA announced that it was issuing subpoenas in an effort to determine if it can pursue loan buybacks from major lenders that may have sold defective mortgage-backed securities to Fannie and Freddie.