Government Doubles Available Aid to Fannie and Freddie

The Washington Post reports:

The federal government has doubled the size of its commitment to Fannie Mae and Freddie Mac, increasing the guarantee against losses on their mortgage investments to $400 billion.

The massive expansion of this public backstop for the troubled mortgage giants was disclosed this morning among the details of the Obama administration's plan to reduce foreclosures.

Fannie Mae and Freddie Mac were seized by the government in September to stabilize their role as the main source of funding for the mortgage lending industry. The government pledged up to $200 billion to cover the companies' losses, but officials said at the time they did not expect the companies to need that much help.

Great moments in national socialism.