GSEs to Return Another $39B to Taxpayers

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This is a great example of what happens when you let the government run any kind of a business. While Freddie and Fannie where losing money by the boatload there was nary a peep out of our duly elected representatives about getting rid of these entities. Now that they are making a bucket loads of money they what to give them to their buddies in the private sector. Nothing underhanded going on here – just move along. For a more detailed look at this subject – please read the article below.

The FHA Condos Approval Company, Inc.

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In the midst of an ongoing political debate surrounding their future, Fannie Mae and Freddie Mac continue to see strong profits. Both GSEs put out their earnings reports Thursday, showing elevated numbers as they continue to benefit from an improving housing market.

According to its quarterly report, Fannie Mae brought in $8.7 billion in profits in the third quarter, marking the seventh consecutive quarter of gains. The same time last year, the mortgage giant reported a comparatively small net income of $2.6 billion.

Fannie Mae attributed its third-quarter wins to continued positive developments in home prices, which brought a reduction in the company’s loan loss reserves. Numbers also saw a boost from compensatory obligations stemming from a settlement with Bank of America early in the year.

Meanwhile, profits shot up to $30.5 billion at Freddie Mac, though most of that came from tax benefits. Pre-tax income was $6.5 billion compared to $4.9 billion last year. It was the eighth straight quarter of positive earnings and the second most profitable quarter in the company’s history, Freddie Mac said.

While the quarter’s figures look encouraging for two companies that not long ago relied on a taxpayer-funded bailout to get by, they noted that current growth levels are supported largely by abnormally high home price appreciation, making such gains unsustainable over the long run as prices moderate.

To read the complete article – please use the link below.

$39B to Taxpayers

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