Estimating the Value of Subsidies for Federal Loans and Loan Guarantees PDF Download

Author: Deborah Lucas
Publisher:
ISBN:
Category : Electronic government information
Languages : en
Pages : 40

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Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 31

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With credit-reform rules having been in effect for more than a decade, the Chairman of the House Budget Committee has asked the Congressional Budget Office (CBO) to reexamine the provisions of the Federal Credit Reform Act (FCRA) with an eye toward identifying possible improvements in, and extensions of, the accrual basis of budgetary accounting. This study - which is one part of CBO's response to that request - focuses on using commercial interest rates, which incorporate risk, instead of risk-free Treasury rates to measure the cost of federal credit programs.

Author: United States. Congressional Budget Office
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Deborah Lucas
Publisher:
ISBN:
Category : Government insurance
Languages : en
Pages : 27

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Author:
Publisher:
ISBN:
Category : Capital budget
Languages : en
Pages : 48

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And introduction -- Actions by the Federal Reserve to address the financial crisis -- The projected impact of the Federal Reserve's actions on the Federal Budget -- Estimates of fair-value subsidies from the Federal Reserve's actions -- Appendix A : Programs created by the Federal Reserve during the financial crisis -- Appendix B : CBO's fair-value methods.

Author: United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 184

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Author: Deborah Lucas
Publisher: DIANE Publishing
ISBN: 1437986846
Category : Business & Economics
Languages : en
Pages : 30

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Statement of Deborah Lucas, Assistant Dir. for Financial Analysis, Congressional Budget Office (CBO). Historically, support for the mortgage market has been part of a broader federal policy aimed at encouraging home ownership and, to a lesser extent, at making housing more affordable for low- and moderate-income families. The activities of Fannie Mae, Freddie Mac, and the Federal Housing Admin. (FHA) have been an important aspect of that policy. In 2010, Fannie Mae and Freddie Mac owned or guaranteed roughly half of all outstanding mortgages in the U.S., and they financed 63% of the new mortgages originated that year. Including the 23% of home loans insured by federal agencies such as FHA, about 86% of new mortgages made in 2010 carried a federal guarantee. However, the largest federal subsidiesfor home ownership have generally come from favorable tax treatment for housing. This testimony focuses on the CBO's estimates of the budgetary cost of the government's takeover and continuing operation of Fannie Mae and Freddie Mac. Lucas also discusses how the budgetary treatment of those two enterprises differs from that of FHA and other federal mortgage programs and the potential problems those inconsistencies cause, and summarizes alternative options for the future role of the federal government in the secondary mortgage market. Tables. This is a print on demand report.

Author:
Publisher:
ISBN:
Category : Budget
Languages : en
Pages : 144

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Author: Mr. Gee Hee Hong
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 62

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Advanced economies made available more than 5 trillion USD through government-supported credit guarantee and direct loan programs to provide lifelines to firms in the face of the COVID-19 pandemic. Notwithstanding the unprecedented scale of credit made available, an in-depth analysis of the fiscal consequences is missing, and the costs of these programs are not recognized in a transparent way. In this paper, we fill in an important aspect of the fiscal picture by estimating the subsidies that were provided by the largest credit guarantee programs introduced in 2020 in seven advanced economies. We estimate the subsidies on a fair value basis that provides a consistent and comprehensive upfront measure of cost. We explain the logic behind applying a fair value framework in a government context and compare it to alternative approaches. For the programs that we examine, total credit extended totaled 1.7 trillion USD. The subsidy element (cash-equivalent subsidy) is estimated to be 67 percent of loan principal on average (37 percent, excluding the US PPP), with a wide range across programs, from 12 to 100 percent. The variation is explained by differences across programs including eligibility criteria, loan terms, compensation to lenders, and other program design choices.

Author: Mary Jean Bowman
Publisher: Routledge
ISBN: 1135980020
Category : Economic policy
Languages : en
Pages : 448

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