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Cost Of Seizing Fannie And Freddie Surges For Taxpayers

Sunday, June 20, 2010 - 6:20 PM
http://www.nytimes.com/2010/06/20/business/20foreclose.html?pagewanted=2&ref=business&src=me ---- Fannie and Freddie took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March, a virtual city with more houses than Seattle. The mortgage finance companies, created by Congress to help Americans buy homes, have become two of the nation’s largest landlords. ----- The Congressional Budget Office predicts that the final bill could reach $389 billion. ----- Prices have plunged. So by the time a home is resold, Fannie and Freddie on average recoup less than 60 percent of the money the borrower failed to repay, according to the companies’ financial filings. In Phoenix and other areas where prices have fallen sharply, the losses often are larger.
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