Covering an increasing debt

To cover losses on home loan investments, Fannie Mae and Freddie Mac have borrowed money from the U.S. Treasury to remain solvent. Both companies pay interest back to the government. Under several scenarios, the companies will have to borrow even more to cover losses and increasing interest.

To cover losses on home loan investments, Fannie Mae and Freddie Mac have borrowed money from the U.S. Treasury to remain solvent.

© 2010 The Washington Post Company