Fannie and Freddie make more money per employee than almost any other company
What Fannie Mae and Freddie Mac do with the money they make has long been a debate in the housing finance world. Some argued that the government-sponsored enterprises should be allowed to retain all their profits, while others argued that the GSEs’ profits should continue to flow to the Department of the Treasury, as they have since the government took the companies into conservatorship.There was finally movement in that argument last week, when the Federal Housing Finance Agency announced that each of the GSEs will be allowed to keep some of their profits to cover against a potential draw from the Treasury amid the “normal course” of business.What has never been up for debate is just how much money the GSEs make. Being the major (only?) players in the secondary mortgage market has been good business for Fannie and Freddie for some time.
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