Fannie Mae-No Politics (FNMA)

[NeoSunTzu]

Treasury claims that HERA provided them the authority to do so and further claims that by March 2012 they had been fully repaid and wound this program down and a $25 B profit to the tax payer. See this link (https://home.treasury.gov/news/press-releases/tg1453). The Federal Reserve purchased many times that amount and are still trying to wind down their purchases.

WASHINGTON – Today, the U.S. Department of the Treasury announced the completion of the orderly wind down of its agency-guaranteed mortgage-backed securities (MBS) portfolio, which it acquired as part of its response to the financial crisis. Overall, Treasury’s MBS portfolio generated a positive return of $25 billion for taxpayers.

Treasury invested $225 billion in MBS during 2008 and 2009 through authority provided to it by Congress under the Housing and Economic Recovery Act of 2008. These MBS purchases helped preserve access to mortgage credit during a period of unprecedented market stress. Overall, taxpayers received total cash returns of $250 billion from this MBS portfolio through sales, principal, and interest – $25 billion more than their initial investment.