Will US taxpayers be on the hook for more losses?
Fannie Mae and Freddie Mac are reluctant to join in the FHA’s new program designed to assist borrowers whose homes are worth less than they owe on their mortgages largely because US Taxpayers would be on the hook for any losses incurred. Fannie and Freddie have already cost US taxpayers more than $130 billion and has so far resisted the program because it would only increase their losses. The clash between the two federal agencies reflects a continuing debate over how far Fannie Mae and Freddie Mac should go to help the housing market – and at what expense.
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