Fannie, Freddie reports reveal clearer view
- August 8, 2014
PoliticoPro, By Jon Prior
Mortgage giants Fannie Mae and Freddie Mac are no longer counting on windfalls from big bank settlements to boost their bottom lines, revealing a clearer picture of the government-controlled companies’ health.
Profits at Fannie and Freddie dropped in the second quarter, in part, because of a cooling housing market and fewer borrowers choosing to refinance. And as banks put their legal troubles over toxic loans and mortgage-backed securities sold to Fannie and Freddie behind them, the two firms will rely more on their traditional business of buying loans from those same banks and packaging them for sale to investors.
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