For the first time since 2012, both Fannie Mae and Freddie Mac require funds from Treasury to cover quarterly losses. Fannie Mae’s reported earnings showed a net loss of $6.5 billion for the fourth quarter of 2017, attributed in part to a re-measurement of the company’s deferred tax assets following the large tax package passed at the end of 2017. Fannie Mae expects to request $3.7 billion from Treasury to eliminate its deficit. Likewise, Freddie Mac reported a $3.3 billion loss and will require $300 million from Treasury. Fannie and Freddie have both indicated that they will continue to contribute to affordable housing trust funds on the grounds that their deficits are due to one-time tax losses and don’t suggest any underlying financial instability.
Fannie and Freddie Request Funds from Treasury after Reporting Losses
Published by Oklahoma Coalition for Affordable Housing
The vision of OCAH: That all Oklahomans have the opportunity to live in safe, healthy and affordable homes. Our Mission: To lead the movement to ensure that all residents of the state of Oklahoma flourish in safe, affordable homes and to help communities develop safe and affordable housing options for all of their residents. We reach our mission through advocacy, education and practical training to foster the production and maintenance of affordable housing throughout the state. View all posts by Oklahoma Coalition for Affordable Housing