Fannie Mae To Start Making Housing Trust Fund Payments

When Congress passed the Housing and Economic Recovery Act (HERA) it included a provision that Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) contribute to the newly established Housing Trust Fund, but considering the shape the GSEs were in at the time it also gave the head of the Federal Housing Finance Agency (FHFA) the right to suspend payments, which he promptly did. Six years later, that’s about to change.

“While the profit levels Fannie Mae has experienced since 2012 are not expected to be sustainable, reasonable projections indicate that Fannie Mae will remain profitable for the foreseeable future,” writes FHFA chief Mel Watt in a...