Fannie Mae-No Politics (FNMA)

[navycmdr]

If you take away all the one-time gains at Fannie Mae and Freddie Mac, the two are barely profitable. Right? That’s what we keep hearing from the executives at both GSEs. In roughly two months Fannie and Freddie will release second quarter earnings, which likely will not contain any huge one-time gains from legal settlements. If both are barely profitable, the CEOs of these institutions will have to explain how two multi-billion-dollar companies, holding low delinquency assets and benefitting from an extremely low cost of funds, can’t turn much of a profit…

Just how low are delinquencies at Fannie Mae these days? According to April 2014 results, Fannie has a serious delinquency rate of just 2.13 percent, a 27 percent decline over the past 12 months…

In a few months Fannie and Freddie will be celebrating the sixth anniversary of their government takeover. Okay, perhaps celebrating isn’t the best word…