Fannie, Freddie bailout could nearly double in size

Posted on October 21, 2010

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The federal bailout for Fannie Mae and Freddie Mac could nearly double in size during the next three years, according to projections from the companies’ federal regulator.

Fannie and Freddie, the federally controlled mortgage finance giants, will need as much as $215 billion more from taxpayers in the next three years to meet their financial obligations, the Federal Housing Finance Agency said Thursday.

The growing taxpayer infusions will cover losses Fannie and Freddie suffer on home loans, as well as payments the companies must make to the U.S. Treasury in exchange for a federal guarantee to provide cash to keep the companies solvent.

via Fannie, Freddie bailout could nearly double in size.

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