Fannie, Freddie post $10.2bn in Q1 profits

by Ryan Smith08 May 2014
Fannie Mae and Freddie Mac saw combined profits of $10.2 billion last quarter, driven for the most part by income from legal settlements.

Fannie Mae saw net income of $5.3 billion in the first quarter, according to a Reuters report. That includes $4.1 billion from legal settlements over various banks’ sales of mortgage-backed securities. Freddie Mac, meanwhile, posted $4.0 billion, including $4.9 billion from litigation over mortgage-backed securities. The first quarter was Freddie’s 10th consecutive profitable quarter.

All told, Fannie and Freddie will return $10.2 billion in first-quarter dividends to the Treasury. By the end of June, the companies will have returned $213.1 billion to the government.

The mortgage finance giants got $187.5 billion in government aid after being placed under conservancy at the height of the financial crisis. Under the terms of the conservancy, Fannie and Freddie must turn their profits over to the Treasury as dividend payments.


  • by Mark Jagusiak | 5/8/2014 11:23:04 AM

    So, if they are becoming profitable, why get rid of them?

  • by Herb McGee | 5/8/2014 11:38:00 AM

    Leave them alone, they are showing a profit, don't screw it up.

  • by Nicholas Corso | 5/8/2014 11:38:31 AM

    Mark agreed-
    You know our Government Brake it because it works..


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