[/caption]Fannie Mae has been the whipping girl of many and deceivingly so, because she has contributed and has been culpable in the housing distress that we are currently going through.
Today, she got some good news – according to the Washington Post, Fannie Mae lost only $1.2 billion. You may say that this a huge sum, but compared to the losses in the past, Fannie should be dancing the jig.
In the second quarter, Fannie is reported to have put away enough money to cover most of its' loses. She is not out of the frying pan yet, but the fire is ebbing.
This relatively good fortune for Fannie comes because more of their clients are paying their bills on time and its' businesses are performing better.
Fannie is a government agency, which assists the public in living the American dream of owning a home. It operates by buying or insuring financial securities made up of home loans, which in turns provides money for lenders to make even more loans.
Fannie has received over $85 billion from the recent bailout, but although today’s report says that it will need less from the public’s coffers, such monetary needs will still be there in the foreseeable future.
The wild card is whether the housing market keeps spiraling out of control because Fannie’s fortunes are tied to the important housing market. But one way or the other, we are going to know Fannie’s future fortunes by keeping an eye, looking at foreclosures, mortgages, and existing home sales.
Fannie Mae, including its' partner in crime Freddie Mac, has been taken over by the agencies in the government since 2008. No one knows how Freddie Mac is faring.
We may not recognize Fannie or Freddie in the near future because Washington is in the initial stages of replacing those two entities. Whatever Fannie’s profile in the future, according to this report she will have more money to contribute to her make over.
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