Five years ago things looked really bad. All phases of the financials markets were collapsing. The Federal government stepped in, with TARP (Trouble Asset Relief Program), and bailed out Banks, FNMA, FreddieMac, Autos and more, almost 700 billion dollars were spent to keep things propped up.
FNMA became a lame duck company when the Federal Government placed them in conservatorship in 2008. The GSE’s (FNMA/FreddieMac) required 187 billion dollars from TARP funds, however, today they have re-paid 185.2 billion to the Feds. That’s 98.7% of the borrowed funds paid back in 5 years. Plus Fannie and Freddie are making significant profits and expect to add additional payments by year end. Also, since all future profits go the government, Fannie/Freddie will be huge money makers for the government and taxpayers sometime in 2014. FNMA: The Lame Duck That Lays The Golden Eggs.