Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Administering Agency/Entity	Federal Reserve System
Short Description	The Federal Reserve Bank of New York purchased direct obligations (debt) of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to reduce the cost and increase the availability of credit for the purchase of houses. Purchases were conducted with the Federal Reserve's primary dealers through a series of competitive auctions.
Primary Purpose	Emergency assistance to housing market or current homeowner
Type of Housing Supported	Homeownership
Type of Assistance	Other
Fiscal Year 2010 Obligations	Purchases of Fannie Mae, Freddie Mac, and Federal Home Loan Bank debt in fiscal year 2010 were valued at $40.8 billion. The GSEs guarantee principal and interest on these securities, but the Federal Reserve could incur market value losses if the securities are sold prior to their maturity.