Freddie Mac and Fannie Mae, the government-backed mortgage insurance and brokerage corporations, have been in massive financial trouble for many years. Both have received billions in taxpayer-funded loans. However, Fannie has published its first profit since 2008 and dropped any federal loans for the moment. How often have you needed more information on tips to get a fast advance loan and resorted to an internet search on quick cash advance?" Your search is over, all the info you will need is at http://www.matchfinancial.com/!
Cash flowing in
About 31 million homes with $5 trillion in value are presently owned by Fannie or Freddie, according to USA Today, and that is about half of all mortgages. Hundreds of billions of dollars were lost during the housing crash by the two companies. It was one of the big issues the country faced.
In Sept 2008, the Federal Housing Finance Bureau had to assume control of the two home loan backing agencies. Fannie and Freddie received massive amounts of federal funding in order to stay afloat, and the agencies have received about $170 billion to date in loans from taxpayers.
Reuters explained that Fannie got about $117.1 billion of that funding. Now, Fannie posted the first profit in about four years.
Requesting no more funding
About $22.6 billion of the loans Fannie has received since 2008 have been repaid by the company. It is doing much better now with a first-quarter profit of $2.7 billion, after a $2.8 billion repayment to the government. Compared with 2011’s first quarter loss of $6.5 billion, the company is doing very well.
From the first quarter of 2011 to the last quarter, there was a decrease in delinquency rates for mortgages at Fannie Mae from 5.47 percent to 3.67 percent, which is also good news.
Fannie has said not to take any more federal funds now, although Freddie Mac is not doing also. Freddie posted a $577 million profit and then borrowed $19 million from taxpayers to make a $1.8 billion payment to working class individuals, according to Reuters. Freddie is still applying for loans.
Still dominant forces
Either Fannie or Freddie owns about 60 percent of all brand new mortgages. Mortgages are purchased by Fannie or Freddie from banks after banks lend the cash and are then sold to security investors. Even though the government warned that Fannie and Freddie need to have reduced roles in the housing industry, they are still very important to the industry.
Including other government-backed entities, government-backed agencies own or guarantee roughly 90 percent of all mortgages, according to USA Today.
Sources
http://www.usatoday.com/money/companies/earnings/story/2012-05-09/fanni…;
http://www.reuters.com/article/2012/05/09/us-usa-fanniemae-idUSBRE8481D…;
http://www.nytimes.com/2012/05/10/business/fannie-mae-profit-signals-a-…;
Tags: fannie mae, fannie mae bailout, fannie mae profit, freddie mac, freddie mac bailout
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