Fannie Mae and Freddie Mac : analysis of options for revising the housing enterprises' long-term structures : report to congressional committees / United States Government Accountability Office.

Format:

Book

Government document

Author/Creator:

United States. Government Accountability Office

Language:

English

Subjects (All):

Federal National Mortgage Association.

Freddie Mac (Firm).

Global Financial Crisis, 2008-2009.

Mortgage-backed securities.

Secondary mortgage market--United States.

Secondary mortgage market.

United States.

Physical Description:

1 online resource (iii, 66 pages) : charts

Other Title:

Analysis of options for revising housing enterprises' long-term structures

Place of Publication:

[Washington, D.C.] : U.S. Govt. Accountability Office, [2009]

Summary:

Congress established Fannie Mae and Freddie Mac (the enterprises) with two key housing missions: (1) provide stability in the secondary market for residential mortgages (also in periods of economic stress) and (2) serve the mortgage credit needs of targeted groups such as low-income borrowers. To accomplish these goals, the enterprises issued debt and stock, purchased mortgages from lenders with the proceeds, and retained them in portfolio or pooled them into mortgage-backed securities (MBS) sold to investors. On September 6, 2008, the Federal Housing Finance Agency (FHFA) placed the enterprises into conservatorship out of concern that their deteriorating financial condition ($5.4 trillion in outstanding obligations) would destabilize the financial system. With estimates that the conservatorship will cost taxpayers nearly $400 billion, GAO initiated this report under the Comptroller General's authority to help inform the forthcoming congressional debate on the enterprises' future structures. It discusses the enterprises' performance in meeting mission requirements, identifies and analyzes options to revise their structures, and discusses key transition issues. GAO reviewed studies and data, and interviewed housing finance experts and officials from the enterprises, FHFA, Departments of the Treasury (Treasury) and Housing and Urban Development (HUD), the Federal Reserve, lenders, and community groups.

Notes:

Title from title screen (GAO, viewed Oct. 14, 2009).

"September 2009."

Includes bibliographical references.

"GAO-09-782."

OCLC:

456427330