Summary Box: Gov’t likely to keep mortgage market support despite Fannie, Freddie collapse
By APMonday, August 9, 2010
Summary Box: Gov’t likely to keep housing role
THORNY QUESTIONS: Keeping mortgage giants Fannie Mae and Freddie Mac alive will cost taxpayers billions more. But analysts say the government is unlikely to end its support of the mortgage business.
HIGHER RATES: If the federal government withdrew its support, that could cost home buyers dearly, in the form of higher interest rates.
MORE LOSSES: Freddie Mac asked for an additional $1.8 billion from the government after posting a second-quarter loss of $6 billion. That brings the cost of keeping Freddie and Fannie in business up to more than $148 billion.
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