Fannie and Freddie will likely keep $130B in profit from 2013

TRD NEW YORK /
Feb.February 11, 2014 06:35 PM

The legal tug-of-war over the more than $130 billion that mortgage giants Fannie Mae and Freddie Mac made last year, all of which was handed over to the Treasury Department, is looking grim for the government. 

In 2012, the Treasury tweaked the terms of the bailout agreement it had with Fannie and Freddie when it seized the two companies on the verge of collapse, which increased the amount they paid out to seven times what they would have paid under the previous agreement, according to the Wall Street Journal.

Investors are betting that plaintiffs in the lawsuit who claim the money belongs to the companies will win the case. About 20 suits have been filed, but even a win might not mean a settlement for awhile.

“If investors are going to get any money out of this, it’s going to come out of the courts, and it’s going to take years,” David Felt, a lawyer who headed litigation with the Federal Housing Finance Agency, told the Journal. [WSJ] — Angela Hunt


Related Articles

arrow_forward_ios
The 30-year fixed-rate average fell to 3.45 percent (Credit: iStock)

US mortgage rates hit 3-year low

Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme

Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

1735 York Avenue and Bonjour Capital's Charles Dayan (Credit: Google Maps)

Dayan’s Bonjour Capital inks $115M refi for Upper East Side building

US home mortgage debt surges past pre-recession record

US home mortgage debt surges past pre-recession record

FHFA director Mark Calabria is ready to set Fannie and Freddie free, while Wall Street worries about potential risks.

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee

FHFA director Mark Calabria (Credit: Federal Housing Finance Agency and Getty Images)

Trump official to pressure Congress to privatize Freddie and Fannie

Mortgage rates plummet to lowest levels in nearly 2 years

Mortgage rates plummet to lowest levels in nearly 2 years

arrow_forward_ios
Loading...