WASHINGTON – Fannie Mae reported a $2.2 billion second quarter net yesterday, the latest sign that the worst of the housing crisis may be over.

The $2.2 billion net came after Fannie paid a dividend of $2.9 billion to the Treasury Department and sought no additional aid.

The mortgage giant attributed the increase to improving home prices and fewer foreclosures, a day after Freddie Mac reported a $1.2 billion second quarter profit.

“We think home prices have stabilized,” Fannie President Timothy Mayopoulos said.

The quarterly profits by the two mortgage giants  comes as good news for credit unions, which depend on Fannie and Freddie to buy an estimated half of all single family mortgage originated at credit unions.

Fannie has reported gains in net income in both quarters this year. It earned $2.7 billion in the January-March quarter and paid a dividend of $2.8 billion to the Treasury.

The company received about $116 billion from the Treasury Department, the most expensive bailout of a single company. It has so far repaid about $26 billion.

Fannie and smaller sibling Freddie Mac were taken over by the government in September 2008 after massive losses on risky mortgages threatened to topple them. Taxpayers have spent about $170 billion to rescue Fannie and Freddie. It could cost roughly $260 billion more to support the companies through 2014 after subtracting dividend payments.


Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.