News Column

U.S. Mortgage Giants Post Huge Profits, Continue to Pay Treasury

May 10, 2014



Washington, Rajab 9, 1435, May 8, 2014, SPA -- The two U.S. government-controlled mortgage-finance giants continue to post huge quarterly profits and make large payments to the U.S. Treasury in exchange for their 2008 rescues by the government.

Fannie Mae posted first-quarter net profit of $5.3 billion, its ninth consecutive profitable quarter, as the housing market continues to strengthen. Smaller sister company Freddie Mac posted $4 billion in net profit in the January-March period, its tenth consecutive profitable quarter.

Fannie Mae said Thursday it will send the Treasury a dividend of $5.7 billion, while Freddie Mac said it will pay a dividend of $4.5 billion.

Fannie Mae, whose previous payments to the government totaled about $121 billion, has more than fully repaid the $116 billion it received in the 2008 government rescue. Freddie Mac, already had repaid its full government rescue of $71.3 billion.

The two companies were rescued by the government at the height of the financial crisis in September 2008. Together, they received taxpayer aid totaling $187 billion.

--SPA

17:57 LOCAL TIME 14:57 GMT

All Rights Reversed for Saudi Press Agency Provided by Syndigate.info, an Albawaba.com company


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Source: Saudi Press Agency (Saudi Arabia)


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