In this report, CBO examines how FHA’s Home Equity Conversion Mortgage program works, how it affects the federal budget, and how various policy approaches might reduce costs and risks to the government or to borrowers.
CBO analyzes four alternative structures for the secondary mortgage market, in which the government would play varying roles in guaranteeing mortgage-backed securities, and provides estimates of federal costs under each approach.
CBO reviews Fannie Mae and Freddie Mac’s program to transfer some of the credit risk of their guarantees to investors and analyzes two approaches for expanding those efforts.
CBO analyzes options to reduce FHA’s exposure to risk from its program to guarantee single-family mortgages, including creating a larger role for private lenders and restricting the availability of FHA’s guarantees.
In this report, CBO analyzes a policy that would allow Fannie Mae and Freddie Mac to increase their capital by reducing their payments to the government and discusses the effects that it would have on the budget and the mortgage market.