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Fannie Mae Asks for $7.8B More From U.S.

McCain called the FHFA's treatment of Fannie and Freddie executives ""outright corruption and blatant abuse of the American taxpayer."

The FHFA on Oct. 27 projected that at the end of 2014, "cumulative Treasury Draws (including dividends)," would "range from $220 billion to $311 billion."

The regulator is hoping to help Fannie Mae and Freddie Mac recoup some of their losses -- now taxpayer losses -- through lawsuits against large mortgage lenders whose mortgage-backed securities were purchased by the government-sponsored mortgage companies, play out.

The regulator in September sued 17 large banks -- including Bank of America (BAC), JPMorgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MS), and Citigroup (C) -- to demand full rescission and recovery of losses sustained by the GSEs from the purchase of nearly $200 billion in mortgage-backed securities from the banks.

The mortgage-backed securities sales to the Fannie and Freddie by Bank of America -- including sales by Countrywide and Merrill Lynch before both companies were acquired by Bank of America -- totaled $57.5 billion, while the FHFA said JPMorgan's securities sales to the government-sponsored enterprises - including those by Washington Mutual before the thrift failed and was sold by the Federal Deposit Insurance Corp. to JPMorgan in Sept. 2008 -- totaled $33 billion.

For Citigroup, the mortgage-backed securities sales to Fannie and Freddie described in the FHFA lawsuit totaled $3.5 billion, while securities sales to the GSEs totaled $11.1 billion for Goldman, $10.6 billion for Morgan Stanley, and $3.5 billion for Citigroup.

With President Obama's expansion of the Home Affordable Refinance Program, or HARP -- which beginning early in 2012 will remove the current 125% loan-to-value ratio for refinancing of mortgage loans held by Freddie Mac and Fannie Mae -- refinancing activity is expected to accelerate, putting pressure on the government-sponsored mortgage giants' interest income and margins.

The FHFA plans to release additional details of the expanded HARP on Nov. 15.

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-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

Stock quotes in this article: BAC, C, JPM, MS, GS, FMCC, FNMA 
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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