Another Fannie Mae and Freddie Mac Bailout Could Be In Question

$100 billion bailout is now in question for Fannie Mae and Freddie Mac if a new economic crisis sets in, according to reports. This would mark a big spill with a considerable amount of money on the line.

"The companies would need to draw between $34.8 billion and $99.6 billion in U.S. Treasury aid under a 'severely adverse' scenario, depending on how they treated assets used to offset taxes, the Federal Housing Finance Agency said in its report," according to National Mortgage News.

"The losses would leave $158.4 billion to $223.2 billion available to the companies under their bailout agreements."

The report reveals that the companies have significantly lowered their default rates and increased their sales, yet for the FHFA, it may not be enough in such stressful situation.

You can learn more about this possible crisis by clicking on the image above.

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