About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (2019)

handle is hein.congrec/fvlcfed0001 and id is 1 raw text is: ~MAY 2019 Fair-Value Estimates of the Cost of Federal Credit Programs in 2020 Summary The federal government supports some private activities by offering credit assistance to individuals and busi- nesses. That assistance is provided through direct loans and guarantees of loans made by private financial insti- tutions. In this report, the Congressional Budget Office estimates the lifetime costs of new loans and loan guar- antees that are projected to be issued in 2020. The report shows two kinds of estimates: those that were created by following procedures currently used in the federal budget, as prescribed by the Federal Credit Reform Act of 1990 (FCRA); and those that account for the market value of the government's obligations, which are called fair-value estimates. Most of the FCRA estimates were produced by other federal agencies, although CBO used FCRA procedures to estimate the budgetary effects of the largest federal credit programs. The fair-value estimates were produced by CBO. Using FCRA procedures, CBO estimates that new loans and loan guarantees issued in 2020 would result in savings of $31 billion. But using the fair-value approach, CBO estimates that those loans and guarantees would have a lifetime cost of $36.5 billion. More than 80 per- cent of the difference between those amounts is attribut- able to three sources: * The guarantees that Fannie Mae and Freddie Mac are projected to make in 2020, analyzed on a FCRA basis, would save the federal government $19.2 billion. Under fair-value accounting, however, the guarantees would cost $1.5 billion. * The Department of Housing and Urban Development's (HUD's) loan and loan guarantee programs are projected to save $7.3 billion on a FCRA basis but to cost $7.1 billion on a fair-value basis. * The Department of Education's student loan programs are projected to save $4.1 billion on a FCRA basis but to cost $17.6 billion on a fair-value basis. Federal Credit Programs For this report, CBO analyzed the 85 programs through which the federal government provides credit assistance. The total amount of federal credit assistance projected for 2020 is $1.4 trillion, consisting of new direct loans that total $128 billion and new loan guarantees that cover $1.3 trillion of loans. Just a few programs are projected to provide more than 90 percent of total federal credit assistance-specifically, the programs offering mortgage Notes: Numbers in the text, table, and figure may not add up to totals because of rounding. Unless the report indicates otherwise, all years referred to are federal fiscal years, which run from October 1 to September 30 and are designated by the calendar year in which they end. For the most part, this report uses the names for departments, agencies, and programs that are given in the Office of Management and Budget's Federal Credit Supplement, which is available at www.whitehouse.gov/omb/supplemental-materials.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most