Fannie Mae Reports Profit
The U.S Government took over Fannie Mae and Freddie Mac in September of 2008; since mid-2007, Fannie Mae has posted losses in 17 of 18 quarters totaling $166.6 billion. In an annual profit report published today however, Fannie reported an annual profit of $17.2 billion, its first annual profit since 2006 and coincidently its largest profit ever. Fannie’s stellar performance in 2012 contrasts sharply to its losses a year earlier of $16.9 billion but reflects a turnaround by the housing market and a decline in the number of bad home loans.
Fannie Mae has received $116.2 billion in federal aid since its takeover and has since paid out $35.6 billion in dividends. Nonetheless, the company still holds $248 billion in nonperforming mortgages and has concluded recently that it does not qualify for certain tax benefits. The company would have seen a drastic reduction in bailout funds if such benefits were posted because those benefits would have boosted its net worth… and Fannie really can’t afford that at the moment.
The Wall Street Journal