Fannie Mae and Freddie Mac distort the U.S. housing and mortgage market at substantial risk to households and U.S. taxpayers. Defaults on loans through Fannie Mae and Freddie Mac have already cost the U.S. taxpayers $154 billion and could cost taxpayers an additional $363 billion. This report estimates the economic impact of eliminating Fannie Mae and Freddie Mac from the U.S. mortgage market. Elimination of Fannie Mae and Freddie Mac and the mortgage interest rate subsidy that these mortgage institutions generate would have minimal impact on the U.S. economy. Congress needs to recognize that this institutional model has failed and should be eliminated to protect U.S. taxpayers and the U.S. Treasury.