Fannie, Freddie Mortgage Guarantees Could Cost $53 Billion on a Fair Value Basis, CBO Estimates
September 24, 2010
Fannie Mae and Freddie Mac are expected to guarantee about $10 trillion in new mortgages over the next decade, and the cost of the federal government’s subsidy to the pair under conservatorship to help facilitate it will come to approximately $53 billion, according to the most conservative, fair value-based estimate from the Congressional Budget Office. But under a different calculation...