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FHFA watchdog: Another Freddie, Fannie bailout could happen

By Trey Garrison

The new report from the Federal Housing Finance Agency’s Office of Inspector General says that while Fannie Mae and Freddie Mac returned to profitability in 2012, but that profitability is not a sure thing going forward.

The report notes that the mortgage industry is complex, cyclical, and sensitive to changes in economic conditions, mortgage rates, house prices, and other factors. “The enterprises have acknowledged in their public disclosures that adverse market and other changes could lead to additional losses and that their financial results are subject to significant variability from period to period,” the OIG says.

Read the full article: FHFA watchdog: Another Freddie, Fannie bailout could happen