In this report, FedFin assesses the provisions in the Administration’s FY13 budget affecting loan-guarantee programs, the section of the budget where details often spell significant strategic change in key programs such as the GSEs. The FY13 budget suggests for the first time that Fannie Mae and Freddie Mac are “systemic,” likely meaning that the GSEs will be among the very first firms named as systemic nonbanks once FSOC finally sets out these standards (see Client Reports in the SYSTEMIC Series). The budget also details significant strains on the FHA, although a set of new premiums is planned to offset these. This report also addresses the revived bank fee the Administration plans to use not just to pay for TARP, but also to offset the cost of the refinancing program recently outlined by the President. FedFin does not expect the fee – now budgeted to raise $61 billion over ten years – to pass.


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