Congressional Budget Office: Fannie, Freddie Could Go Private

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00003466-congressional-budget-office-fannie-freddi/

By Robert Schroeder, MarketWatch

Mortgage finance giants Fannie Mae and Freddie Mac are in a position to wean themselves away from government support and become private companies, the director of the Congressional Budget Office said Thursday.

Such a move “would reduce their risks and costs to the federal government,” CBO Director Douglas Holtz-Eakin said in written testimony at a Senate Banking Committee hearing.

The CBO estimates that Fannie, Freddie and the Federal Home Loan Banks got about $23 billion in federal subsidies in 2003 and passed on $13.6 billion to borrowers as reduced mortgage rates.

For this complete story, please visit CBO: Fannie, Freddie could privatize.

Congressional Budget Office: Fannie, Freddie Could Go Private

Unknown Author

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