GSE credit facility program

The GSE credit facility program (Treasury)

This program was intended to be used as a backstop of liquidity for Fannie Mae and Freddie Mac. It was never used and was shut down by Treasury on Dec. 31, 2009. It was authorized under HERA.

Funding agency and aid type
The funding agency was the Treasury Department.

Loans to Fannie and Freddie.

Who benefits
Participants and investors in the housing market.

Background
SIGTARP : “GSE Credit Facility Program — Total Potential Support: $25 Billion. The third Treasury program conducted under HERA relating to the GSEs is a program designed to “ensure credit availability to the housing GSEs by providing secured funding on an as-needed basis.” All of the GSEs (Fannie Mae, Freddie Mac, and the FHLBs) would be able to borrow under the program if needed until December 31, 2009. Treasury’s FY 2010 budget describes the program as one of short-term loans — less than one month but greater than one week — collateral- ized by MBS issued by Fannie Mae and Freddie Mac and advances made by the FHLBs; no loan can have a maturity date later than December 31, 2009.”

Via Prins: "“The function of the GSE Credit Facility is to ensure credit availability to the housing GSEs by providing secured funding on an as needed basis under terms and conditions established by the Secretary of the Treasury to protect taxpayers. Fannie Mae, Freddie Mac, and FHLBs are eligible to borrow under this program if needed. This facility offers liquidity if needed until December 31, 2009.”"

Related SourceWatch articles

 * SIGTARP Quarterly Report to Congress July 21, 2009
 * Troubled Asset Relief Program