Current Weather
The Spy FM

Fannie Mae Posts Profit, Doesn’t Need Federal Funds For First Time Since Crisis

Filed by KOSU News in Business.
May 9, 2012

The mortgage giant Fannie Mae announced today that it made $2.7 billion during the first quarter of 2012. For the first time since the beginning of the financial crisis, Fannie Mae will not ask the federal government for bailout funds.

CNN reports the company will pay a dividend to the Treasury Department. CNN adds:

“The company was able to report the gain mostly because it had lower expenses for its losses. Two key reasons: home price declines have slowed and fewer mortgages are in serious delinquency. …

“January and February made up the best winter for sales of previously occupied homes in five years. Builders are making plans to build more homes in 2012 than at any other point in past 3½ years. Mortgage rates have never been cheaper. And while home prices continue to fall, most cities have reported smaller annual declines than in previous months.”

MSNBC reports that last year, during this same quarter, Fannie Mae posted a $6.5 billion net loss.

In a statement, the company said its potential for losses had likely peaked in December of 2011 and that it expects its financial results in 2012 to be “significantly better than 2011.”

Fannie Mae had asked for money from the Treasury in every quarter since it was taken into conservatorship by the government in Sept. of 2008. During the fourth quarter of 2011, it asked for a $4.6 billion draw from the Treasury. [Copyright 2012 National Public Radio]

Leave a Reply

9PM to 5AM The Spy

The Spy

An eclectic mix of the Spy's library of more than 10,000 songs curated by Ferris O'Brien.

Listen Live Now!

5AM to 9AM Morning Edition

Morning Edition

For more than two decades, NPR's Morning Edition has prepared listeners for the day ahead with two hours of up-to-the-minute news, background analysis, commentary, and coverage of arts and sports.

View the program guide!

9AM to 10AM The Takeaway

The Takeaway

A fresh alternative in morning news, "The Takeaway" provides a breadth and depth of world, national and regional news coverage that is unprecedented in public media.

View the program guide!

Upcoming Events in your area (Submit your event today!)

Streaming audio and podcasts

Stream KOSU on your smartphone

Phone Streaming

SmartPhone listening options on this page are intended for many iPhones, Blackberries, etc. with low-cost software applications available to listen to our full-time web streams, both News on KOSU-1 and Classical on KOSU-2.

Learn more about our complete range of streaming services

We're perfecting the patient experience - Stillwater Medical Center