Stimulus.org - FHFA

Streamlined Modification Program

Maya MacGuineas — Mon, 17 Aug 2009 14:06:50 +0000

Date:

November 11, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

Creation of fast-track method for reducing monthly payments on mortgages held by Fannie Mae or Freddie Mac, restricting payments to 38 percent of income, reducing the interest rate, extending loan periods, and, deferring principal.

Source:

FHFA Nov. 11 Statement

Notes:

CBO's estimate from "Budget and Economic Outlook: Fiscal years 2009 to 2019" (http://www.cbo.gov/doc.cfm?index=9957) is listed as "unknown." FHFA is the Federal Housing Finance Agency.

Is not a top-level node

Purchase of Freddie Mac Preferred Stock

suggp — Fri, 14 Aug 2009 19:04:37 +0000

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Maximum Amount:

100000000000

Maximum Amount Special Symbol:

Amount Spent:

63700000000

Deficit Impact:

As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. At the time, they estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.

In a release on December 24, 2009, the Treasury announced that it has terminated the $200 million cap on purchases on Fannie Mae and Freddie Mac preferred stocks, stating thatsuch steps "are necessary for preserving the continued strength and stability of the mortgage market."

Source:

Bloomberg News Article 8/7/2009

Treasury Release 12/24/2009

Notes:

Since the purchase of Freddie Mac preferred stock by FHFA constituted an intergovernmental transfer of stock from a GSE to a federal agency, the deficit impact is zero. Amount spent as of 2/25/2011 (http://www.fhfa.gov/Default.aspx?Page=70).

Is not a top-level node

Purchase of Fannie Mae Preferred Stock

suggp — Tue, 11 Aug 2009 01:33:02 +0000

Date:

September 7, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Maximum Amount:

100000000000

Maximum Amount Special Symbol:

Amount Spent:

98700000000

Deficit Impact:

As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. They estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.

In a release on December 24, 2009, the Treasury announced that it has terminated the $200 million cap on purchases on Fannie Mae and Freddie Mac preferred stocks, stating that such steps "are necessary for preserving the continued strength and stability of the mortgage market."

Source:

Treasury/ FHFA Sept. 7 Announcement

Treasury Feb. 18 Statement

Wire Story 8/6/2009

Treasury Release 12/24/2009

Notes:

Since the purchase of Fannie Mae preferred stock by FHFA constituted an intergovernmental transfer of stock from a GSE to a federal agency, the deficit impact is zero. Amount spent as of 5/9/2011 (http://www.fhfa.gov/Default.aspx?Page=70).

Is not a top-level node

Conservatorship of Fannie/Freddie

Maya MacGuineas — Fri, 10 Jul 2009 19:59:50 +0000

Date:

September 7, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Government Conservatorship

Maximum Amount:

Amount Spent:

Deficit Impact:

389000000000

Placement of Fannie Mae and Freddie Mac into government conservatorship by the Federal Housing Finance Agency, until the institutions are deemed to have been stabilized. Conservatorship was coupled with other actions to ensure liquidity.

CBO estimates that $291 billion in federal outlays went towards the conservatorship of Fannie and Freddie in 2009, with a projected $98 billion in subsidies over the next 10 years.

As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. They estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.

Source:

Treasury/ FHFA Sept. 7 Announcement Treasury/ FHFA Sept. 7 Announcement

Treasury Feb. 18 Statement

CBO Report on Bugetary Treatment on Fannie and Freddie, January 2010

Notes:

Deficit impact represents CBO's estimate of the cost of bringing Fannie Mae and Freddie Mac "on-budget" for 2009-2019 (per CBO's proposed budgetary treatment) calculated by assessing the risk-adjusted net present value of Fannie Mae's and Freddie Mac's current net liabilities, plus their subsidy costs for 2009. (http://www.cbo.gov/ftpdocs/108xx/doc10878/01-13-FannieFreddie.pdf).

Is not a top-level node