NOV 15, 2012
What We're Hearing

Uncle Sam, the Most Profitable Mortgage Banker in America?

NOV 15, 2012 12:38pm ET
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What was that old criticism about Fannie Mae and Freddie Mac (pre-conservatorship) – that their risk was “public” but their profits were private? Well, guess what? Their risk is still public – but their profits are too. Freddie earned $5.6 billion in 3Q, Fannie $2.6 billion. Annualized, that translates into $32.8 billion – money that will go straight into the Treasury’s coffers. But let’s not forget about their little sister, Ginnie Mae, which earned $606 million in fiscal year 2012. And it all started under a Republican president George W. Bush and continued under a Democrat who never ran a business in his life, except for maybe a lemonade stand when he was a kid in Hawaii.  

 

 

Comments (1)
Lemonade stand? I think what Obama was slinging in Hawaii had more kick than lemonade. Also mortgage was a lucrative business under Bush. It was not sustainable and crashed. Now we have artificially low interest rates, fast tracked short sales, forgone flipper rules, etc. We are seeing profits now, but is it sustainable?
Posted by Jack Navarro | Friday, November 16 2012 at 11:07AM ET
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