Freddie Mac

The US second largest provider of funding for home mortgages Freddie Mac plans to lift some fees on loans it finances which shows there are greater risks even for borrowers making regular payments.

In the bulletin released this week the mortgage giant says it will some so-called "delivery fees" in March to cover increased risks on loans covering large portions of a property's value. The fees are charged to lenders, but will likely raise costs on many loans for both purchases and refinancings, including those already funded by Freddie Mac.

Fannie Mae and Freddie Mac have been delisted from the New York Stock Exchange as their shares fell too below the minimum requirement of the exchange.

Freddie Mac's common stock, now unlisted, will trade under the symbol "FMCC." Investors will be able to trade Freddie Mac's 20 classes of preferred stock.

Fannie Mae's common stock will trade under the symbol "FNMA." Its preferred shares also will be listed.

American taxpayers who are at present about to pay some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans may face higher bill to cover the debt of the mortgage giants.

According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, the cost to the taxpayer could hit as much as $1 trillion.

According to WashingtonPost the Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. 

The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama's current term.