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Fannie Mae Posts Biggest Profit Since Government Rescue

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  • Description

    FBN's Peter Barnes on Fannie Mae's improved profit.

  • Duration 1:49
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There it is -- and -- the first time Fannie Mae and Freddie Mac were bailed out one of them.

Did not need extra money from the cash taxpayers which is weird guy can't even I can discuss it Peter Barnes with us now -- DC.

-- and they're giving money back aren't bank.

Yeah that's right they're -- in the government dividends both of -- they have been all along 10% a quarter but it was Fannie Mae -- that reported a two point seven billion dollar.

First quarter profit.

And it's the first time that's happened since the company was bailed out by the taxpayers in 2008.

But this was not because business at that Fannie is booming on the housing market still in the tank.

Rather the company reduce the amount of money.

It sets aside for possible losses.

On mortgages in the future.

I've resisted to about two billion dollars in the last quarter from eleven million dollars -- set -- the same quarter a year ago and about the reasons for this are good home price declines have slowed there are fewer mortgages and serious delinquency.

But Fannie still -- the taxpayers 93 billion dollars from its bailout.

They're making good loans they're making him.

To people who have the ability to repay the loans.

They're making among property.

That's worth the value of the loan and those are good things and so when this happens there -- some potential profit.

And and that profit should be used to to repay the -- that they dug themselves that it.

And -- your -- Freddie Mac reported its results last week -- asked the treasury for just nineteen million dollars but still us the taxpayers 54.

Billion dollars Tracy.

I get a little bit of accounting announced stuff going on -- to create those numbers but I guess we'll take it.

Peter Barnes and DC thanks Sarah -- to.

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