Congress to Fannie/Freddie: We Love You, Really

For a long time now, Fannie Mae and Freddie Mac have been a favorite punching bag of many members of Congress. Yes, the two GSEs blew a huge hole in the Treasury but within five years (if they are left alone) it’s feasible that their debt will be paid back through earnings. All the cash the two are likely to take in the next five years will NOT be going to common shareholders and ‘retained earnings.’ It will be going into the coffers of Uncle Sam. And suddenly, Congress is starting to realize this very important fact: Fannie and Freddie are a source of government revenue. And all that money can be used for other things besides housing – like a pending immigration bill. (See the story on today’s National Mortgage News website.) Immigration? We kid you not.