Approaching their fifth year in conservatorship, a longer-term view is emerging that taxpayers might eventually recoup the nearly $188 billion bailout that kept the mortgage giants afloat during the housing market collapse.
If they’re make that much money now, why not keep that revenue cash cow in place for the fed, instead of giving it to an abusive corrupt housing industry? This is supposed to be bad news?
The Hill: Fannie, Freddie profits could sap will in Congress to reform mortgage giants: Fannie Mae announced on Thursday that it would send $59.4 billion in dividends to the Treasury. The day before, Freddie Mac said it had $7 billion for the government’s coffers.
The greedmeisters hate to see all that green slip through their hands:
Fitch Ratings said that the massive dividend payment "will likely complicate efforts to pursue far-reaching” reform of the government-sponsored enterprises (GSE). Lawmakers and housing industry experts have called for reforms in the mortgage finance system to shift the lead role from the government to the private sector.
Heck the private sector deserves that money, not the American people who would benefit from lower interest rates and get the bailout money back. They’re foaming at the mouth:Not very subtle. The idea is to encourage private capital back into the markets. I’m not sure I understand why that would happen, or that it would benefit home buyers.
Some in Congress might view the agencies as "self-healing" and ask, "what's the urgency," especially as money pours into the Treasury. Instead, industry leaders said lawmakers need to face the reality that Fannie and Freddie remaining under government control is "not acceptable." Fannie CEO Tim Mayopoulos used Thursday's financial announcement to reiterate his stance that it would be a mistake for Congress to turn away from reform. "Our goal is to have private capital come and take as much of this market as it can," he said.