During the 2008 collapse of the housing market, Fannie Mae and it's brother company, Freddie Mac were seized by the government after they nearly feel into bankruptcy. Four years later, Fannie Mae is reporting a second quarter profit of $5.1 billion and no longer requires federal bailout money.
One of the major causes of this increase in profit? The up and coming real estate market that is projected to continue to increase throughout 2012.
Another reason Fannie Mae is not seeking federal bailout is that the losses from the subprime era loans its acquired were much lower than expected; therefore, Fannie did not need to allocate their funds to future losses.Freddie Mac is right behind it's sister company with second quarter profits of $3 billion, resulting in no need for federal bailout funds.
The current debt held by both Fannie and Freddie equals close to $142 billion, dropped down from the $188 billion total amount of federal bailout they have received over the past 4 years.
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