Fannie Mae Facility
Mortgage News

Fannie Mae, Freddie Mac now permitted to keep $45 billion in profits

The nation’s two biggest mortgage lenders, Fannie Mae and Freddie Mac, will now be able to retain a larger share of their profits as the United States looks to transition them into private control. 

The Treasury Department and Federal Housing Finance Agency announced Monday that a new letter of agreement aims to boost the capital reserves of Fannie Mae and Freddie Mac.

After the 2008 recession, the two housing giants were a major focus of the bailout that helped stabilize the U.S. economy. Both private companies were placed under government control and had their quarterly profits swept for years in order to cover the cost of keeping them afloat. 

Together, Fannie Mae and Freddie Mac comprise about half of the nation’s guaranteed loans. The companies provide loans to low and moderate income home buyers. 

A report from Reuters notes that the decision stems from a larger housing policy overhaul that would eventually shrink the footprints of Fannie Mae and Freddie Mac. 

Under the new agreement, Fannie Mae will be able to keep $25 billion in profit and Freddie Mac will be able to keep $20 billion. The two companies have paid the U.S. Treasury $292 billion since 2012, when the profit sweeps were put into effect. They had received $191.5 billion in government support through the bailout package. 

Officials are hoping the two companies can develop other ways to build capital outside of retained earnings, calling the status quo “not an option,” according to American Banker.

The news represents a sign of how far the housing market has come since the crash, but also shows just how much these two institutions have supported it. Given their financial positions, continued siphoning of profits would simply have left them vulnerable in the event of another crash — again requiring the government to step in to the rescue.

Photo credit: MrHarman/Creative Commons – Fannie Mae facility in Reston, Virginia

319 Comment

  1. Pingback: viagra coupon cvs
  2. Pingback: cialis from india
  3. Pingback: otc cialis
  4. Pingback: viagra 100mg
  5. Pingback: men's ed pills
  6. Pingback: ed pills for sale
  7. Pingback: cialis 20 mg
  8. Pingback: canadian pharmacy
  9. Pingback: cialis visa
  10. Pingback: generic cialis
  11. Pingback: online vardenafil
  12. Pingback: online levitra
  13. Pingback: viagra generic
  14. Pingback: cialis pill
  15. Pingback: cash payday
  16. Pingback: payday advance
  17. Pingback: payday loans
  18. Pingback: viagra pills
  19. Pingback: ohkay casino
  20. Pingback: cialis to buy
  21. Pingback: suncoast hotel
  22. Pingback: cialis generic
  23. Pingback: new cialis
  24. Pingback: cialis 5 mg
  25. Pingback: cialis 5 mg
  26. Pingback: generic for cialis
  27. Pingback: cheapest viagra
  28. Pingback: real casino
  29. Pingback: viagra price
  30. Pingback: viagra dosage
  31. Pingback: online ed pills
  32. Pingback: buy viagra
  33. Pingback: cialis coupon
  34. Pingback: sildenafil
  35. Pingback: viagra sales usa
  36. Pingback: online gambling
  37. Pingback: buy cialis online
  38. Pingback: casinos online
  39. Pingback: http://droga5.net/
  40. Pingback: Viagra 120 mg usa
  41. Pingback: viagra vs cialis
  42. Pingback: Cialis 80 mg otc
  43. Pingback: viagra alternative
  44. Pingback: Cialis 10 mg price
  45. Pingback: Cialis 40mg uk
  46. Pingback: Cialis 60mg otc
  47. Pingback: buy cialis online
  48. Pingback: buy levitra 40mg
  49. Pingback: order lasix 100mg
  50. Pingback: finasteride 1mg nz
  51. Pingback: generic cialis
  52. Pingback: amaryl 4mg tablets
  53. Pingback: viagra coupon
  54. Pingback: cialis 10mg
  55. Pingback: benicar 40mg uk
  56. Pingback: cialis ie
  57. Pingback: cardizem nz
  58. Pingback: celebrex prices
  59. Pingback: cipro 750 mg otc
  60. Pingback: casino
  61. Pingback: real casino
  62. Pingback: online gambling
  63. Pingback: real casino
  64. Pingback: online slots
  65. Pingback: vehicle insurance
  66. Pingback: aaa car insurance
  67. Pingback: Google
  68. Pingback: tadalafil cialis
  69. Pingback: buy cialis
  70. Pingback: Buy viagra in us
  71. Pingback: payday loans
  72. Pingback: quick loans
  73. Pingback: buy cialis online
  74. Pingback: viagra capsule
  75. Pingback: cbd cannabis oil
  76. Pingback: ananda cbd oil
  77. Pingback: cbd in marijuana
  78. Pingback: buy levitra usa
  79. Pingback: how many viagra
  80. Pingback: online essay
  81. Pingback: my paper writer
  82. Pingback: writing my essay
  83. Pingback: essay help
  84. Pingback: write my essays
  85. Pingback: buy an essay paper
  86. Pingback: Buy now viagra
  87. Pingback: clonidine online
  88. Pingback: clozaril 25mg usa
  89. Pingback: Viagra overnight
  90. Pingback: colchicine prices
  91. Pingback: combivent usa
  92. Pingback: mail order cialis
  93. Pingback: coreg 12,5mg otc
  94. Pingback: essay 123 help
  95. Pingback: generic cialis
  96. Pingback: Brand viagra
  97. Pingback: cozaar 25 mg cheap
  98. Pingback: crestor price
  99. Pingback: cymbalta 40mg cost
  100. Pingback: thesis express
  101. Pingback: cheapest ddavp
  102. Pingback: buy depakote 125mg
  103. Pingback: diamox uk
  104. Pingback: differin 15g price
  105. Pingback: cheap diltiazem
  106. Pingback: doxycycline cost
  107. Pingback: elavil 10mg online
  108. Pingback: erythromycin usa
  109. Pingback: geodon tablet
  110. Pingback: hyzaar coupon
  111. Pingback: buy generic cialis
  112. Pingback: cialis 20mg price
  113. Pingback: imitrex medication
  114. Pingback: cheap cialis
  115. Pingback: pop over here
  116. Pingback: viagra canada
  117. Pingback: indocin usa
  118. Pingback: lopid tablet
  119. Pingback: luvox 100 mg cheap
  120. Pingback: meclizine online
  121. Pingback: buy micardis
  122. Pingback: Dipyridamole
  123. Pingback: sri lanka viagra
  124. Pingback: prevacid tablet
  125. Pingback: prilosec for sale
  126. Pingback: provigil australia
  127. Pingback: reglan tablets
  128. Pingback: cheap remeron 30mg
  129. Pingback: how to buy revatio
  130. Pingback: risperdal generic
  131. Pingback: rogaine purchase
  132. Pingback: seroquel cheap
  133. Pingback: cheap singulair
  134. Pingback: spiriva prices
  135. Pingback: thorazine coupon
  136. Pingback: like this
  137. Pingback: zocor coupon
  138. Pingback: zovirax tablet
  139. Pingback: viagra last longer
  140. Pingback: zyvox cheap
  141. Pingback: furosemide usa
  142. Pingback: pioglitazone cost
  143. Pingback: leflunomide cheap

Comments are closed.