FHFA Forecasts Billions More In GSE Treasury Draws

The Federal Housing Finance Agency (FHFA) anticipates that the government-sponsored enterprises (GSEs) will need to draw additional billions from the U.S. Department of the Treasury over the next three years.
‘Under the three scenarios used in the projections, cumulative Treasury draws (including draws required to pay dividends) at the end of 2015 range from $191 billion to $209 billion,’ says the FHFA in a new report. ‘If dividend payments were subtracted from the projected cumulative draws, the net combined amounts for both enterprises would range from $67 billion to $138 billion.’

The GSEs have drawn $187.5 billion from Treasury since they were placed in federal conservatorship in September 2008. The FHFA's scenario assumptions are predicated on several factors, including increased strength in housing prices, zero growth in credit guarantees and the ability of the GSEs to limit the addition of their retained portfolios to non-performing loans bought out of pools backing Fannie Mae's mortgage-backed securities and Freddie Mac's participation certificates.

The full FHFA report is now online.


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