Can Fannie and Freddie Earn Money Again?

So, it looks like the $80 billion that Uncle Sam spent to bail out American International Group eventually will be paid back. And with a little luck maybe the U.S. will get back the $17 billion it pumped into GMAC/Ally Financial. Okay, maybe not so fast on that last one. Ally's foreclosure problems have blown a hole in any plan to sell its mortgage division (or selected assets) or take it public along with the parent company. Then again, valuations can change quickly. So maybe TARP was a decent idea after all? I'll let the financial historians and Profs at Harvard and Princeton deal with that one. But will Uncle ever get his money back on Fannie Mae and Freddie Mac? The Treasury is down $150 billion on the two, but as I've asked in the past: what about all those mortgage insurance policies, and loan buybacks the GSEs have been jamming back to the industry? And what about the bond insurance policies on its private label investments? Surely, these actions should reduce that $150 billion debt. But a more important question is this: will the GSEs turn a profit once again — some time in the near future? Both will release third quarter earnings in November. If only they didn't have to make those pesky dividend payments to Treasury. Stay tuned…