Fannie Mae-No Politics (FNMA)

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Isn't the earnings report evidence enough that Fannie was on the road to financial recovery? I know an earnings report is somewhat speculative and forward-looking, but the analysis was backed by positive data.

http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-esults/2012/q22012_release.pdf

Filed on August 8, 2012. The PSPA 3rd Amendment wasn't filed until August 17, 2012.

'WASHINGTON, DC – Fannie Mae (FNMA/OTC) today reported net income of $5.1 billion in the second quarter of 2012, compared with net income of $2.7 billion in the first quarter of 2012. Combined with first-quarter results, the company has reported $7.8 billion in net income for the first half of 2012. The company’s continued improvement in financial results in the second quarter of 2012 was almost entirely due to credit-related income, resulting primarily from an improvement in home prices, improved sales prices on the company’s real-estate owned (“REO”) properties, and a decline in the company’s single-family serious delinquency rate. The company’s comprehensive income of $5.4 billion in the second quarter of 2012 is sufficient to pay its second-quarter dividend of $2.9 billion to the Department of the Treasury.

“Better market conditions and our actions to strengthen Fannie Mae’s new business and limit losses from the company’s legacy business contributed to positive second-quarter results,” said Timothy J. Mayopoulos, president and chief executive officer. “While it is too early to declare a national housing recovery, and our results for the second half of 2012 may not be as strong as the first half, we expect our financial results in 2012 to be substantially better than the past few years. With our high-quality new book of business and diminishing legacy expenses, Fannie Mae has strong potential earnings power that can deliver considerable value to taxpayers over the long term.”'