August 24, 2014

Fannie, Freddie to pay Treasury $5.6B

Aug. 8, 2014 – Fannie Mae and Freddie Mac announced they generated $3.7 billion and $1.4 billion in net income in the second quarter and will pay a combined $5.6 billion to Treasury in September.

Both entities reported declines in income compared with the first quarter, when they won significant legal settlements related to private-label mortgage-backed securities.

The two housing-related government-sponsored enterprises have been in conservatorship since 2008. Lawmakers have discussed but not yet moved legislation that would address a wind-down of the entities or a revamp of the housing finance system. Even so, the current drafts are expected to provide a framework for future debate.

NAFCU is staying vigilant to ensure credit unions maintain access to the secondary mortgage market and retain fair pricing based on loan quality.