The mortgage-finance companies under the conservator ship of US, Freddie Mac and Fannie Mae might draw three hundred and sixty three billion dollar aid from Treasury Department through 2013 if the housing markets fall down more. This fact was reported by the Federal Housing Finance Agency (AHFA).
The government run bodies are supervised by the FHFA which has submitted the estimate today as the worst case. There was an analysis on stress tests carried out in the last year on the country’s biggest banks, on the basis of that it gave the estimate.
If the regulator is faced with a dire scenario the actual money it has to give back the taxpayers would be around two hundred and fifty nine billion dollars. Thirty percent of the money will return back to Treasury, as dividend payments, on the Treasury’s holdings of senoior preffered stocks
If the scenario gets better the housing market may recover in the near future then also the total cost to taxpayers will be two hundred and twenty one billion dollars which will become one hundred and forty two billion dollars after dividend. If the scenario stands in the middle path then also an aid of two hundred and thirty eight billion dollars will be needed which will amount to one hundred and fifty four billions after dividends.
The firms, so far have taken one hundred and forty eight billion dollars where as paid back thirteen billion to Treasury as dividends.
According to the statement made by the FHFA acting director Edward J Demarco, the policy makers as well as public can get a feel that what kind of support taxpayers would receive from Freddie Mac and Fannie Mae from the projections.












