by Calculated Risk on 10/26/2012 10:50:00 PM
Friday, October 26, 2012
Report: Bailout Costs for Fannie and Freddie expected to decline
From Nick Timiraos at the WSJ: Cost of Bailing Out Fannie and Freddie Expected to Fall Sharply
Fannie Mae and Freddie Mac are expected to begin repaying taxpayers for their bailout faster than initially projected, in part because of an improving housing market.Here is the report from the FHFA: FHFA Updates Projections of Potential Draws for Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency, the companies' federal regulator, released a report on Friday that estimated they will pay between $32 billion and $78 billion to the U.S. Treasury through 2015. The baseline forecast assumes that the companies would end up costing taxpayers $76 billion by the end of 2015, down from the current tab of $142 billion.
...
The regulator's latest forecasts show that Freddie Mac won't require additional government support, even under a "worst case" scenario that envisions further home-price declines. Fannie might need government aid this year to pay the 10% dividend but would only need additional aid in subsequent years if home prices were to fall sharply.