Fannie and freddie are very profitable, no question in that, while under stricter regulation. Only problem is the FED gets all the profit for as long as they want, as terms of the bail out. They have to give it back sooner or later, but as they need money they will hold on. My only concern is buying on a big margin. The stock even though cheap, can still plummet 50% percent any time some kind of bad news pops up. With no margin ill sit on it for 5 years. I dont wanna invest $100,000 with a 50% margin and have to cover $50,000 cash everytime there is bad news.
