The federal government plays a substantial role in the housing market. Fannie Mae and Freddie Mac purchase and guarantee loans from banks and other lenders, and the Federal Housing Administration and some other agencies increase the availability of mortgages by assuming most of the risk of default on loans to eligible home buyers. In addition, the federal tax code encourages home ownership by allowing deductions of mortgage interest and property taxes and excluding most capital gains from taxation when a home is sold. CBO's work (including its analysis of Fannie Mae and Freddie Mac) assesses the effects of those policies and the impact of legislative proposals regarding the housing market.
Housing
featured work
Modifying Mortgages Involving Fannie Mae and Freddie Mac: Options for Principal ForgivenessCBO examined three options for Fannie Mae and Freddie Mac to use principal forgiveness for certain underwater borrowers. How would those options affect the number of mortgage defaults, the federal budget, and the overall economy?
Growth in Means-Tested Programs and Tax Credits for Low-Income HouseholdsFeb 2013 - During the past 40 years, federal spending for major means-tested programs and tax credits for low-income households more than tripled as a share of gross domestic product. In 2012, such spending totaled $588 billion.
Fannie Mae, Freddie Mac, and the Federal Role in the Secondary Mortgage MarketDec 2010 - This study looks at how Fannie Mae and Freddie Mac evolved into the institutions they are today.
The Budgetary Cost of Fannie Mae and Freddie Mac and Options for the Future Federal Role in the Secondary Mortgage MarketJune 2011 - Testimony before the Committee on the Budget, U.S. House of Representatives.
Accounting for FHA's Single-Family Mortgage Insurance Program on a Fair-Value BasisMay 2011 - Letter to the Honorable Paul Ryan.
An Overview of Federal Support for HousingNov 2009 - This CBO brief describes, in broad terms, the array of federal activities that support housing and the expansion of particular programs.
latest work
Testimony on Means-Tested Programs and Tax Credits for Low-Income Households
reportJune 18, 2013S. 534, National Association of Registered Agents and Brokers Reform Act of 2013
cost estimateJune 13, 2013S.J. Res. 12, a joint resolution to consent to certain amendments enacted by the legislature of the State of Hawaii to the Hawaiian Homes Commission Act, 1920
cost estimateMay 30, 2013Report on the Troubled Asset Relief Program—May 2013
reportMay 23, 2013Options for Principal Forgiveness in Mortgages Involving Fannie Mae and Freddie Mac: Working Paper 2013-02
working paperMay 1, 2013Modifying Mortgages Involving Fannie Mae and Freddie Mac: Options for Principal Forgiveness
reportMay 1, 2013Fannie Mae, Freddie Mac, and the Future of the Secondary Mortgage Market
blog postApril 4, 2013H.R. 1003, a bill to improve consideration by the Commodity Futures Trading Commission of the costs and benefits of its regulations and orders
cost estimateApril 1, 2013
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