GSE Profits Put Taxpayers More Than $78 bln Ahead

Posted To: MND NewsWire

Fannie Mae and Freddie Mac (the GSEs) each reported positive financial results for the fourth quarter of 2016. The two have posted nearly uninterrupted quarterly profits, (Freddie Mac had a net loss of $354 million in the first quarter of 2016) since 2012. Under the conservatorship agreement, net profits are "swept" to Treasury in the form of dividends. After the expected Q4 dividends, Treasury will have received $78.4 billion more than the GSEs borrowed. Fannie Mae reported annual net income of $12.3 billion and comprehensive income of $11.7 billion in 2016. In the fourth quarter income was $5.0 billion and comprehensive income was 4.9 billion. Income in the third quarter was$3.2 billion and for all of 2015 it was $10.6 billion Freddie Mac's full-year net income was $7.8 Billion and Comprehensive...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

from Mortgage News Daily http://ift.tt/2ls5fv5