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

U.S. Government Accountability Office

Housing Finance Agency Initiative: New Issue Bond Program

Administering Agency/Entity Department of the Treasury
Short Description Purchased securities of Fannie Mae and Freddie Mac backed by new housing bonds issued by housing finance agencies (HFA). The New Issue Bond Program (NIBP) temporarily allowed HFAs to issue an amount of new housing bonds equal to what they would ordinarily have been able to issue with the allocations Congress provided them but were unable to issue because of challenges in housing and related markets. Treasury designated private-sector firms as its financial agents to act as independent asset managers to undertake the purchase and management of the portfolio. HFAs submitted detailed program participation requests to Treasury’s financial agents for participation in NIBP.
Primary Purpose Emergency assistance to housing market or current homeowner
Type of Housing Supported Both
Type of Assistance Other
Fiscal Year 2010 Obligations -$79,000,000; represents the expected credit subsidy costs for securities purchased in fiscal year 2010, worth $15.3 billion. The ultimate cost will not be known until the securities mature or are sold. Treasury’s authority to purchase securities under the program expired on December 31, 2009.

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