Feb. 17 (UPI) -- Government-backed mortgage companies Fannie Mae and Freddie Mac will pay $10 billion in dividends to the government, a sign of a resurgent housing market.
The Federal National Mortgage Association – FNMA, or Fannie Mae – reported a $5 billion profit in the fourth quarter Friday and a $5.5 billion dividend to be paid in March to the U.S. Treasury. The announcement came the day after the Federal Home Loan Mortgage Corp. – FMCC, or Freddie Mac – reported a $4.8 billion fourth quarter profit and a $4.5 billion dividend. The improvement in the fortunes of the companies, under government conservatorship since the 2008-2009 financial crisis, indicate the strong housing market is allowing the government to use Fannie and Freddie profits to fund other government programs.
