Fannie Mae, Freddie Mac to send $10 billion in dividends to U.S. Treasury

U.S. mortgage financiers Freddie Mac and Fannie Mae reported $5 billion in profit in the fourth quarter of 2016. Following the subprime mortgage crisis in 2008, Freddie and Fannie were both placed into conservatorship, and all executives and member of boards of directors of both companies dismissed by the Federal Housing Finance Agency. File Photo by Kevin Dietsch/UPI

Feb. 17 (UPI) — Government-backed mortgage companies Fannie Mae and Freddie Mac will pay $10 billion in dividends to the government, a sign of a resurgent housing market.

The Federal National Mortgage Association – FNMA, or Fannie Mae – reported a $5 billion profit in the fourth quarter Friday and a $5.5 billion dividend to be paid in March to the U.S. Treasury. The announcement came the day after the Federal Home Loan Mortgage Corp. – FMCC, or Freddie Mac – reported a $4.8 billion fourth quarter profit and a $4.5 billion dividend.

The improvement in the fortunes of the companies, under government conservatorship since the 2008-2009 financial crisis, indicate the strong housing market is allowing the government to use Fannie and Freddie profits to fund other government programs.

The earnings reports by Fannie Mae and Freddie Mac are the first in the Trump administration. Newly confirmed Treasury Secretary Steven Mnuchin has advocated an overhaul of the companies. Their strong positions suggest they could soon be returned to shareholder control, Bloomberg News said Friday.


Please enter your comment!
Please enter your name here