Fannie and Freddie profits on mortgage loans

Fannie’s fourth quarter earnings fell by 66% from $6.5 billion in Q4 2013 to $1.3 billion in Q4 2014. Freddie reported a profit of $227 million in the fourth quarter compared to $8.6 billion a year ago and said it would send the government $900 million.

The two mortgage giants were put into government conservancy in 2008. A $197.5 billion cash infusion from the U.S. Treasury saved the mortgage companies. The GSEs have to send their profits to the government and cannot build their capital buffer.

“Everyone agrees that conservatorship cannot continue forever, so I hope my colleagues will keep working towards a more certain future for the housing market,” Johnson said today at the Senate Banking Committee hearing with Watt. “If Congress cannot agree on a smooth, more certain path forward, I urge you, Director Watt, to engage the Treasury Department in talks to end the conservatorship.”