On March 19, 2012, Treasury said that it had sold the last of $225 billion in mortgage-backed securities acquired from the Freddie Mac and Fannie Mae at the height of housing meltdown. The bonds are mostly 30-year, fixed-rate mortgages and backed by Fannie and Freddie. The US Treasury began to buy them in October 2008 and continued the buying spree through December 2009. The bonds worth of $225 billion were then sold incrementally beginning in March 2011. So far, the U.S. recuperated, Treasury reported on March 19, 2012, $250 billion in sales, principal and interest, netting a profit of $25 billion.
The purchase of $225 billion mortgage-backed securities is different from the bailout provided to Fannie and Freddie. As of March 13, 2012, two companies plus the Federal National Mortgage Association and the Federal Home Mortgage Corporation have received a total of $188 billion in taxpayer money, and Fannie and Freddie paid back about $36 billion in dividends since the bailout began in 2008, leaving the US taxpayers on tenterhook of $152 billion in hole.
On May 9, 2013, Fannie Mae reported that the quasi-governmental mortgage holding company made $58.7 billion in profit in the 2013 first quarter. Fannie had applied $51 billion in tax credit from its losses from delinquent loans to the profit figures. Under a federal policy adopted 2012 summer, Fannie and Freddie must turn over their entire net worth over $3 billion each quarter to the US treasury. Fannie reported that during the first quarter its net worth was $62.4 billion. So, Fannie will give a special dividend of $59.4 billion to the US government, thus raising the total amount it will have paid to $95 billion out of $116 billion it has received from the government as part of 2008 bailout program.
The purchase of $225 billion mortgage-backed securities is different from the bailout provided to Fannie and Freddie. As of March 13, 2012, two companies plus the Federal National Mortgage Association and the Federal Home Mortgage Corporation have received a total of $188 billion in taxpayer money, and Fannie and Freddie paid back about $36 billion in dividends since the bailout began in 2008, leaving the US taxpayers on tenterhook of $152 billion in hole.
On May 9, 2013, Fannie Mae reported that the quasi-governmental mortgage holding company made $58.7 billion in profit in the 2013 first quarter. Fannie had applied $51 billion in tax credit from its losses from delinquent loans to the profit figures. Under a federal policy adopted 2012 summer, Fannie and Freddie must turn over their entire net worth over $3 billion each quarter to the US treasury. Fannie reported that during the first quarter its net worth was $62.4 billion. So, Fannie will give a special dividend of $59.4 billion to the US government, thus raising the total amount it will have paid to $95 billion out of $116 billion it has received from the government as part of 2008 bailout program.
