Fannie Mae Reports Its Biggest Profit In History, And It Has Written A Gigantic Check To Taxpayers

Business Insider ^ | 04/02/2013 | Joe Weisenthal

[SeekAndFind]

Fannie Mae — the much-hated, government-backed entity that needed a massive bailout and gets accused of inflating the housing bubble -- just reported its biggest annual profit in history.

From the announcement that came out this morning:

Fannie Mae (FNMA/OTC) today reported annual net income of $17.2 billion for 2012 and quarterly net income of $7.6 billion for the fourth quarter of 2012, compared with a net loss of $16.9 billion for 2011. The improvement in the company’s full-year and quarterly net income was due primarily to improved credit results driven by a decline in serious delinquency rates, an increase in home prices, higher sales prices on Fannie Mae-owned properties, and the company’s resolution agreements with Bank of America.

So the comeback that we're seeing around the country in housing and credit is benefiting Fannie Mae big time.

What's more, the company is paying back the government for the huge bailout it got.

You can see in this chart that in 2012 it cut a gigantic $11.6 billion check to the Treasury, as it pays back its bailout.

[dirtboy]

Wow, they’ve paid back less than a third of what they sucked out of the Treasury. And the only reason they are profitable is because the Fed is printing so much money, hosing savers and driving up the cost of living.

Color me unimpressed.

[FlingWingFlyer]

It’s April 2nd. Enough of the April Fools stuff.

[Graewoulf]

Now is the time to sell off Fannie Mae, Freddie Mac, and the damned FHA to private companies so that the 2008 Housing Fannie Bubble can never happen again.

[Vigilanteman]

Not to mention they've pretty much driven all of their competitors out of business, except as a facade to distribute and administer loans. I was able to get a refi last year at 2.75%, which was, of course, very nice. But the closing costs included a nice big chunk of change which the bank had to fork over to Fannie for the privilege of rewriting my loan.

It is nice to be in a business where you can force your competitors to add costs to your customers for the privilege of being allowed to do business.

[unixfox]

Ok, this came from Fannie Mae. Like I trust them. NOT.

[rollo tomasi]

Joe's use of positive adjectives are intense and magniloquent propaganda to say the least.

The comment: "If $11.6 billion is a "gigantic" check, what does that make the $60 billion borrowed from the treasury in 2007?" puts it in proper perspective.

I hope F&F have another "banner" year, maybe by 2040 they could finally pay off that fiat stuff they borrowed plus interest. I hope conditions will be sustained which caused this "massive" profit (In the face of perpetual liabilities) in the first place, lol. But what about all that grifting before the borrowing? How much dubious "accounting" $$$ was lost/manipulated when LBJ and Nixon "freed" the most favorable "Ginnie Mae" upon this current "cronyistic" economy.

[woodbutcher1963]

Next time you might want to consider using a credit union.
Many of those do not sell the mortgage, especially if you have a lot of equity.

I have found in this area(New England) the credit unions have been more aggressive on mortgage rates than most of the banks. They also retain the servicing in house even if they actually sell the note.

[Washi]

...And It Has Written A Gigantic Check To Taxpayers...

Oh, really?

I'm one of the (dwindling number of) taxpayers. I don't remember getting a check.

Oh, by "to taxpayers" they mean to the federal government.

So, we can expect our taxes to go down, right? Right?

[Leaning Right]

Ok, this came from Fannie Mae. Like I trust them. NOT.

Yep. And I expect that soon the top Fannie Mae executives will be awarded million-dollar "performance bonuses."

[Iron Munro]

It is just a gigantic government backed scam.

Get low interest money from the government that allows them to drive compettitors out of business.

Loan money out at a mark-up.

Get taxpayers to cover bad loans.

[OrioleFan]

Fro me a “gigantic” check to the taxpayers would be on the order of trillions. How deep is the Social Security hole?

[Aevery_Freeman]

You mean little Sushi and Malaria?

[bgill]

Can we assume he’s still getting his wallet filled with kickbacks from Fanny? Remember, as a junior senator, his wallet was the 2nd most lined from them.