Fannie Mae, Freddie Mac and FHLB equal $6.8 Trillion US Debt

Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM) along with 12-member Federal Home Loan Bank system (FHLB) controls a whopping $6.8 trillion of US debt, this amounts to more than half of the total US government debt which stands at $10.6 trillion, according to a report by the Federal Housing Finance Agency.

The FHFA now supervises both Fannie Mae and Freddie Mac through a government conservatorship after the two mortgage giants were seized in the summer by the Federal government. It also now watches over the 12 home loan banks.

According to the report the 14 government-sponsored enterprises either guaranteed or purchases almost 87 percent of new mortgages that were made in the second quarter of this year.

Freddie Mac who posted a $25.3 billion loss in the third quarter was the first last week to ask the government for a cash injection of $13.8 billion of government funds, this was the first bank to take advantage of the Treasury’s $200 billion bailout promise.

Source: APGoogle

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