Program May Cost Fannie, Freddie $9 Billion

Washington Post (06/13/08) P. D4
The Congressional Budget Office calculates that the U.S. Senate's foreclosure rescue bill will exact a heavy financial toll on Fannie Mae and Freddie Mac: at least $9 billion over a period of 10 years. The costs will come in the shape of fees for U.S. mortgage insurance and state affordable housing grant programs developed under the legislation. If it passes, the government-sponsored enterprises will be required to pay out an estimated $710 million combined next year--much more than the "manageable" $175 million annually that Freddie Mac had anticipated.