The Real Deal Miami

Declaring ‘recovery’ would be premature, despite Q2 profits, new Fannie CEO warns: VIDEO

August 08, 2012 03:45PM

Fannie Mae reported net income of $5.1 billion in the second quarter of 2012, putting the government sponsored entity in the black for the second quarter in a row, CNBC reported in an interview with Timothy Mayopoulos, Fannie’s new CEO. (See video above.)

But despite the rosier numbers, Mayopoulos underscored that housing was not yet “out of the woods,” as CNBC put it. “It’s too early to declare a national housing recovery,” but “prices have stabilized.”

The CEO also said that the issue of principal reduction is “a complex topic,” but was careful to avoid criticizing Federal Housing Financing Agency acting head Edward DeMarco’s recent decision to prohibit underwater Fannie and Freddie borrowers from receiving the loan write-downs. [CNBC]