Fannie Mae-No Politics (FNMA)

[Dallas66]

I have an important question.

PLEASE provide a link or verifiable DD if anyone has a plausible answer.

Per this mornings release by freddie that they made a profit of
of 4.6 billion and will repay the treasury 7 billion.

In that press release it clearly stated that FnF are no longer paying a 10% dividend, but are required to pay all profit monies ABOVE 3 billion as repayment to the taxpayers.

Here is my question.

Each quarterly payment made going forward...does this money REDUCE the debt owed on a dollar for dollar basis.

Quote from press release

"Starting this year, Freddie Mac and Fannie Mae will cease paying 10 percent dividends that have returned $65 billion to the Treasury and will instead turn over any profits above a permitted capital reserve"

If the payments reduce the debt on a dollar for dollar basis, it is quite possible that FnF can become debt free within 5 years.

Link

http://www.bloomberg.com/news/2013-05-08/freddie-mac-will-pay-treasury-7-billion-on-first-quarter-profit.html?cmpid=yhoo