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Over the past few years, mortgage houses Fannie Mae and Freddie Mac have been placed in conservatorship. Since the government is now in charge, the company was given a ton of money in bailout funds. The emergency loans that were given to the mortgage houses weren’t form TARP funds, and taxpayers complain that the tab is too big. The afflicted firms have become targets of protest.

The tab of Fannie Mae and Freddie Mac is to rise

Recently, Fannie Mae went back to the government just to ask for $8.4 billion more in loans, after posting an $11.5 billion loss for the first quarter of 2010. Freddie Mac also dropped a ton of revenue for the quarter seeing $6.7 billion go down the drain. Of course that isn’t as bad as last year but Freddie Mac wants $10.6 billion extra from taxpayers. Aside from these two requests, that brings the total tab to about $145 billion, according to CNN Money

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We aren’t counting the TARP bailout

Funds that Fannie Mae and Freddie Mac have already used aren’t part of the Troubled Asset Relief Program. The Congressional Budget Office, according to CNN, believes that the toxic twins will end up costing taxpayers $389 billion by 2019.

Final Fannie Mae tab hard to figure out

It is hard to tell what the tab will actually be for the Fannie Mae and Freddie Mac bailout. There are conflicting viewpoints between the Congressional Budget Office and the Office of Management and Budget. One says they are in the budget while another keeps them off books. To be fair, CBO has made some big mistakes. One has to wonder how long it could possibly be before Fannie Mae and Freddie Mac will be on YouCut.

Article Resources

Fannie Mae

http://personalmoneystore.com/moneyblog/2010/05/12/fannie-mae-freddie-mac-foreclosures/

CNN Money

http://money.cnn.com/2010/05/13/news/companies/fannie_freddie_teaparty.fortune/

Tags: emergency loans, Fannie Mae, Freddie Mac, YouCut