They may be in federal conservatorship, but a funny thing is happening to the two "troubled" mortgage giants, Fannie Mae and Freddie Mac: They are making tons of money.
It's enough to give federal bailouts a good name.
With double-digit home price appreciation and more buyers coming off the sidelines, there have been fewer defaults and more revenues on GSE (government sponsored enterprises) loan guarantees. That's translated into a handsome $17.2 billion profit in 2012 for Fannie Mae, while its twin, Freddie Mac, posted gains of $11 billion.
Read more...Why Fannie and Freddie Should Exist in the New Mortgage Market - The Home Front (usnews.com)