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VOL. 41 | NO. 7 | Friday, February 17, 2017
Fannie Mae to pay Treasury $5.5 billion after profit doubles
NEW YORK (AP) — Fannie Mae will pay the U.S. Treasury a $5.5 billion dividend next month after its profit doubled in its latest quarter.
The government-controlled mortgage company has already paid the Treasury $154.4 billion in dividends since receiving $116.1 billion in bailouts from the government between 2008 and 2011. On Thursday, Fannie Mae's sibling Freddie Mac, which was also rescued by the government during the recession, said it was paying the Treasury $4.5 billion next month after its profit soared.
Both companies buy mortgages from lenders, package them as bonds, guarantee them against default and sell them to investors. They do not make loans to homebuyers directly.
Fannie Mae said it had net income of $5.04 billion in the fourth quarter, up from $2.5 billion in the same period a year ago.