RENEE MONTAGNE, Host: NPR's business news starts with Fannie Mae and Freddie Mac.</s>RENEE MONTAGNE, Host: NPR's Chris Arnold has more.</s>CHRIS ARNOLD: The numbers in this government report are pretty eye-popping. The Federal Housing Finance Agency says so far, Fannie and Freddie have cost taxpayers $135 billion. Phillip Swagel is an economist at Georgetown University who is studying how to reform Fannie and Freddie.</s>PHILLIP SWAGEL: Taxpayers lost a lot of money because Fannie and Freddie were guaranteeing mortgages in a way that management and shareholders got the upside and taxpayers got the downside. And going forward, we need to fix that.</s>CHRIS ARNOLD: Swagel says that at first glance this report might just seem like more depressing news about the economy. But...</s>PHILLIP SWAGEL: The headline of the report is scary, but if you look at the details, it's actually not that bad. It says that we're almost done - not much more taxpayer money has to go into the firms.</s>CHRIS ARNOLD: The report actually offers two scenarios going forward: if the economy really stumbles again and home prices plunge sharply, then things get more expensive. But Swagel says under the much more likely scenario...</s>PHILLIP SWAGEL: If house prices stay low and then very gradually recover, then very little more money into Fannie and Freddie - $6 billion more.</s>CHRIS ARNOLD: Chris Arnold, NPR News.
The two mortgage giants — Fannie Mae and Freddie Mac — could end up costing taxpayers billions more over the next three years, according to a new government report.