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Will Freddie Mac Require Another Draw from Treasury?

DSnews, By Brian Honea

In light of the substantial decline in profitability of both Fannie Mae and Freddie Mac for 2014, Urban Institute senior fellow Jim Parrott, a former economic adviser to President Obama, examined the likelihood of Freddie Mac making another draw from the U.S. Department of Treasury in a research brief published Monday entitled “What to Make of the Dramatic Fall in GSE Profits.”

A hugely profitable year in 2013 for both Fannie Mae ($84 billion) and Freddie Mac ($49 billion) shifted widespread speculation from winding down the two GSEs to instead ending FHFA’s conservatorship of the two Enterprises, which began in September 2008 after the two received a combined $188 billion from Treasury in bailout funds.

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