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Fannie and Freddie could need $126 billion taxpayer bailout in next crisis, stress test finds

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Fannie Mae headquarters in Washington.

Fannie Mae and Freddie Mac together could need a taxpayer bailout of as much as $125.8 billion in a new, severe economic downturn, their regulator said Monday.

In a ‘severely adverse scenario.’ the stress test found, Fannie and Freddie would require a Treasury draw of at least $49.2 billion and as much as $125.8 billion.

The Federal Housing Finance Agency released the results of a stress test required by the post-financial-crisis Dodd Frank Act that examined how the mortgage giants would perform in what FHFA calls a “severely adverse scenario.” The test found Fannie and Freddie would require a Treasury draw of at least $49.2 billion, and as much as $125.8 billion, in a scenario devised by the Federal Reserve.

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