- Posted May 9, 2012 by
This iReport is part of an assignment:
Fannie Mae Posts Profit - Doesn't Need Another Bailout
It was a shocker this morning to read that mortgage giant Fannie Mae actually made money the first quarter of this year. Even more shocking is that it would not follow the trail as Freddie Mac, it's brother entity, and beat it hat in hand asking Congress for another infusion of taxpayer money.
Mortgage giant Fannie Mae reported its first profit since it was taken over by the government during the 2008 financial crisis.
Instead of seeking additional aid from taxpayers, the company will pay a dividend of $2.8 billion to the Treasury Department.
Fannie said Wednesday that it earned net income attributable to common stockholders of $2.7 billion in the January-March quarter. In the quarter one year ago, Fannie reported a net loss of $6.5 billion.
The company was able to report the gain mostly because it had lower expenses for its losses. Two key reasons: home price declines have slowed and fewer mortgages are in serious delinquency.
The gain also adds to evidence of slow improvement in the home market five years after the housing bubble burst.
Guess this goes to prove that miracles can happen.
From the Cornfield, let's all keep our fingers crossed that this trend continues.