Fannie Mae & Freddie Mac: Scenario Math — What Various Default Rates
Could Mean for Taxpayer Ultimate Cash Cost
Fannie Mae / Freddie Mac VY VY . Ultimate Cash Cost Outstanding Loan Guarantees| /\ Default Rate | LOSS Severity — to Taxpayer
Outstanding | Default | Ultimate Cash Cost Loan Guarantees Rate Loss Severity* to Taxpayer 2% $50 Billion - $160 Billion 5% $125 Billion 4 eT $5 Trillion’ Ml i Ml ili || REN a OMB Forecasts (before 10% $250 Billion of Ultimate Cash conservatorship in 15% $375 Billion eae? EE Mac 9/08) | i 20% $500 Billion 25% $625 Billion
i L L
Note: * Loss severity is liquidation value (foreclosure auction or other means) as a % of the loan amount adjusted for any advances and fees. Source: 1) Fannie Mae, Freddie Mac.
KP i USA Inc. | Income Statement Drilldown 199
: Rising Debt Periodic Large SUE TEIN Level & Interest One-Time
S : pending Payments Charges
Note: *denotes F2010 net income / net loss of respective programs, data per White House OMB. 1) Medicare and Social Security net loss excludes Trust Fund interest income. 2) TARP net loss includes proceeds from sale of warrants. TARP is Troubled Asset Relief Program; ARRA is American Recovery & Reinvestment Act programs.
KP FSA sa erpce.com USA Inc. | Income Statement Drilldown 200
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