January 22nd, 2014 1:38 PM by Preston Ware
Fannie Mae and Freddie Mac return to profitability
The speculation that Fannie Mae and Freddie Mac will eventually shut down seems more and more less likely every year. Back in 2008 the quasi government agencies just about went under but with 187.5 billion dollars of stimulus money our government kept them afloat.
After this we heard plans of phasing out and other sources of private money taking their place. (e.g Hedge funds and Insurance companies)
Now Fannie Mae and Freddie mac have since returned to profitability and repaid the US government 185.2 billion dollars in dividends. Fannie and Freddie hold approximately 60% of all home loans.
This is good news for stable housing markets in the future.