Five years ago this week, the government bailed out housing finance giants Fannie Mae (FNMA_) and Freddie Mac (FMCC_) and placed them in conservatorship.
It was the first of many bailouts to follow, but it was the largest, with taxpayer support adding up to $188 billion over time.
Today, these government-sponsored enterprises, or GSEs, are back to making record profits, thanks in part to a recovery in housing. By September, Fannie and Freddie will have collectively paid Treasury $146 billion in dividends. Analysts predict the dividends from GSE could make taxpayers whole by the end of 2014.
Read more...5 Years Later, Mortgage Market Still Needs Fannie Mae, Freddie Mac (Update 1) - TheStreet