by KYW's John Ostapkovich

The federal takeover of Fannie Mae and Freddie Mac will not be without its costs, on a number of fronts (see related story).

Forrest Huffman, professor of real estate and finance at Temple University's Fox School of Business, says that while the takeover was no surprise given the agencies' wobbly finances, its effects could be.
 
Professor Huffman (right) says projections that taxpayers could foot a $300 billion bill for this sound low to him.  He thinks it could be two or three times that -- close to $1 trillion. 

And although some say the federal government's drastic move will lower interest rates, Huffman is not one of them.  And he says it will also have an impact on getting a mortgage:

"I would expect liquidity problems.  I would expect loan terms to become more stringent and more conservative as lenders realize that they have to hold onto more of the mortgages that they originate.  And that would push up interest rates, costs and, you know, lending you less money so the loan has less chance of default."

Professor Huffman says shareholders in Fannie Mae and Freddie Mac stand to take a real beating:
 
"They'll wipe out the current shareholders.  They're talking about the preferred shareholders and whether or not they may get anything.  They'll probably be wiped out, and the taxpayer will come in and take over the securities that are in most danger of default."