It is believed that Fannie Mae and Freddie Mac will start paying back the money it received from the government as a bailout, much earlier than expected due to improvements in the housing market.

The Federal Housing Finance Agency estimates have shown that the company's will pay between $32 billion and $78 billion to the U. S. Treasury until 2015. The regulator said in a report that the companies will own $76 billion to the tax payers by 2015, compared to an earlier estimate of $142 billion.

Senior federal prosecutor in the US has filed a lawsuit against the Bank of America for more than $1 billion on Wednesday for being involved in mortgage fraud against Fannie Mae and Freddie Mac during the time of the financial crisis.

U. S. Attorney Preet Bharara said that Countrywide Financial offered loans to people from 2007 to 2009 without making sure that they would be able to return the loans to the lender, which was later acquired by the Bank of America. It was also observed that the accusations laid against the bank are upfront.

The attorney also said that the lawsuit is aimed at recovering some of losses suffered by Fannie and Freddie due to unpaid loans. The lawsuit alleged that Countrywide sold the loans to Fannie Mae and Freddie Mac that were later not repaid by the borrowers and the company has to suffer huge losses.