Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  OTC Bulletin Board  >  Federal National Mortgage Assctn Fnni Me    FNMA   

SummaryNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Federal National Mortgage Association : Freddie Mac to cut $30.4 billion check to U.S. taxpayers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/07/2013 | 03:35pm CEST

WASHINGTON (Reuters) - Government-controlled mortgage firm Freddie Mac (>> Federal Home Loan Mortgage Corp) said on Thursday it will pay $30.4 billion (18.9 billion pounds) in dividends to the U.S. Treasury after a multibillion-dollar tax-related windfall fuelled a record profit in the third quarter.

WASHINGTON (Reuters) - Government-controlled mortgage firm Freddie Mac (>> Federal Home Loan Mortgage Corp) said on Thursday it will pay $30.4 billion (18.9 billion pounds) in dividends to the U.S. Treasury after a multibillion-dollar tax-related windfall fuelled a record profit in the third quarter.

The report from Freddie Mac, which recorded pre-tax income of $6.5 billion, came on the same day its larger sibling and fellow state ward Fannie Mae said it would be making an $8.6 billion dividend payment to the government.

Fannie Mae (>> Federal National Mortgage Association) said rising home prices helped push its net income to $8.7 billion for three-month period that ended September 30.

Taking into account a decision to write up nearly $24 billion in tax-related assets, Freddie Mac's net income for the period was $30.5 billion.

The latest payments to the U.S. Treasury from the two government-controlled companies will nearly erase the net cost of their $187.5 billion taxpayer-funded bailout. In return for the aid, the companies are required to sweep most of their profits into the Treasury.

When Freddie Mac makes its dividend payment in December, it will have returned all of the $71.3 billion it received in taxpayer aid, and an additional $9 million.

Fannie has received $116.1 billion from the Treasury, and it will have sent $113.9 billion in dividend payments to the Treasury by December.

By early 2014, taxpayers likely will have turned a profit on the bailout of the two housing finance giants, which own or guarantee about two-thirds of all U.S. home loans.

But under their bailout terms, their debt to taxpayers cannot be repaid and they will continue to make dividend payments as long as they are profitable.

(Reporting by Margaret Chadbourn; Editing by Andrea Ricci)

By Margaret Chadbourn

Stocks mentioned in the article
ChangeLast1st jan.
FEDERAL HOME LOAN MORTGAGE CORP 8.45% 1.54 End-of-day quote.-12.35%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FEDERAL NATIONAL MORTGAGE
05/19FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Rep. Hensarling Issues Statement on Fanni..
AQ
05/18FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Dougherty Mortgage Closes $2 Million Fann..
AQ
05/18FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Media Reports Raise Serious Questions Abo..
AQ
05/18HENSARLING : Committee Must Examine Allegations of Latest Fannie Mae Backdoor Sc..
AQ
05/17FEDERAL NATIONAL MORTGAGE ASSOCIATIO : 2018 Growth Forecast Holds But 2019 Gets ..
PU
05/17FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Dougherty Mortgage Closes $510,000 Fannie..
AQ
05/17FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Dougherty Mortgage Closes $2.5 Million Fa..
AQ
05/16FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Fannie Mae Prices $565 Million Multifamil..
PU
05/16FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Dougherty Mortgage Closes Fannie Mae Loan..
AQ
05/16FEDERAL NATIONAL MORTGAGE ASSOCIATIO : Fannie Mae and Freddie Mac Refinance Volu..
AQ
More news
News from SeekingAlpha
2016WALL STREET BREAKFAST : Sterling Dives On Brexit Jitters 
2016Fannie Mae at risk of needing a bailout 
2016Fannie Mae's (FNMA) CEO Tim Mayopoulos on Q4 2015 Results - Earnings Call Tra.. 
2016The FHFA Conservator Provides Evidence For The Perry Appeal 
2016Fannie Mae to dividend Treasury another $2.9B 
Financials ($)
Income Statement Evolution
Consensus
 
Mean consensus UNDERPERFORM
Number of Analysts 1
Average target price 1,00 $
Spread / Average Target -31%
EPS Revisions
Managers
NameTitle
Timothy J. Mayopoulos President, Chief Executive Officer & Director
Egbert L. J. Perry Non-Executive Chairman
Bruce Lee Senior VP, Head-Operations & Technology
David C. Benson Chief Financial Officer & Executive Vice President
Frederick Barton Harvey Independent Director