Improper Accounting for Fannie Mae, Freddie Mac in the Federal Budget
Created on March 16, 2014
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Read the original report, "Revealing Fannie Mae’s and Freddie Mac’s Budget Costs: A Step Toward GSE Elimination."
Due to improper accounting measures applied to GSEs Fannie Mae and Freddie Mac, total federal spending in FY 2013 was underreported by $102 billion. Projections for FY 2014 would bring the underreported two-year total to $187 billion.
Source: GSE profits: Congressional Budget Office, “The Budget and Economic Outlook: 2014 to 2024,” February 4, 2014, http://www.cbo.gov/publication/45010 (accessed February 25, 2014); GSE subsidy: estimates by Deborah Lucas, “The Budgetary Cost of Fannie Mae and Freddie Mac and Options for the Future Federal Role in the Secondary Mortgage Market,” Congressional Budget Office, testimony before the Committee on the Budget, U.S. House of Representatives, June 2, 2011, http://www.cbo.gov/publication/41487 (accessed February 24, 2014).
CHART 1 • BG 2892
Tags: Fannie-Mae, Freddie-Mac, Fannie-Freddie, GSE, housing, off-budget