The estimates we have seen on how much Fannie Mae and Freddie Mac are costing taxpayers may be overblown. According to NewsGenius,
The Federal Reserve reported a record payout to the Treasury Department Monday, as its profits were boosted by government-sponsored entity securities it purchased during the financial crisis. Income from these investments totaled roughly one-half of the $148 billion cost of Fannie and Freddie while in conservatorship.
But FTN Financial analysts believe the Fed profits from the $1 trillion in mortgages it bought through 2009 show that estimates on the total cost to taxpayers from the GSEs may be overblown.
“For all the fuss and headlines that will accompany discussions of GSE reform this year, taxpayers have not suffered to the degree they’ve been lead to believe,” Vogel said.
Read the full article here.
