Golly. Even with the 'bad law' in place, looks what's happening. I guess the facts don't agree with you....<quoted text>You are right GW Bush Adminstration did carry on with those HUD policies and the Legislation enacted under Clinton Adminstration and used tax payer dollars too to help low income people to buy houses and why I have said too GW Bush was a Pseudo Liberal within the Republican Party which even Bruce Bartlett confirms that in his Book "How George W. Bush Bankrupt America and betrayed the Reagan Legacy".
Home Ownership and President Bush
George Bush: we want everybody in America to own their own home. That's what we want.
Freddie Mac profit jumps; will pay U.S. Treasury $4.4 billion
Margaret Chadbourn 13 hours ago Budget, Tax & EconomyFinanceFreddie MacFannie MaeInterest rate
File photo shows the headquarters of mortgage lender Freddie Mac in McLean
The headquarters of mortgage lender Freddie Mac is seen in Mclean, Virginia, near Washington, in this …
By Margaret Chadbourn
WASHINGTON (Reuters)- Freddie Mac , the U.S.-owned mortgage finance company, on Wednesday said its second-quarter profit surged 65 percent to $5.0 billion, its second largest ever, as rising home prices limited credit losses and it booked big gains on derivatives that benefited from rising interest rates.
That big profit and another like it expected soon from larger sister Fannie Mae are fast becoming the centerpiece of the debate over housing-finance reform, which has languished since taxpayers stepped in to rescue the pair to the tune of nearly $188 billion during the financial crisis....
Freddie Mac, which has operated under federal conservatorship since it was seized in 2008 during the financial crisis, said that based on its net worth of $7.4 billion, it will make a dividend payment of $4.4 billion to the U.S. Treasury as part of the reimbursement for its rescue aid.
Meanwhile, the company continued to hold off on writing up $28.6 billion in tax assets, an accounting move that would dramatically increase its remittance to the Treasury. A determination on when to mark up some or all of the so-called deferred tax assets could occur by year end, the company said.
"If the positive trend in our book and taxable income continues, we may release the valuation allowance in the next two quarters," Freddie Mac Chief Executive Officer Donald Layton said in a conference call.
Fannie Mae has already booked a comparable allowance in the first quarter, triggering a massive dividend to the Treasury of $59.4 billion, most of which was attributable directly to the accounting gain.
For the second quarter, Freddie's net income rose to $5.0 billion from $3.0 billion a year earlier. It was up 9 percent from the first quarter's $4.6 billion, putting the company on track for record annual profitability....
PROFITS FROM HOUSING RECOVERY
The return to profitability of Freddie and Fannie in the last two years has largely occurred on the back of a continuing housing market recovery, marked by rising home prices and falling mortgage delinquencies.
U.S. home prices are rising at the fastest pace since 2006. The S&P/Case Shiller index of property values in May showed home prices racked up a hefty 12.2 percent gain from the year before.
Both Freddie Mac and Fannie Mae are required to pay everything above $3 billion to the Treasury in return for taxpayer aid under existing bailout terms.
The two companies have paid nearly $132 billion in dividend payments. Freddie expects to pay the Treasury the $4.4 billion dividend payment by September, bringing Freddie's total to roughly $41 billion as the amount of dividends it will have paid to the Treasury. The company has drawn $71 billion in federal aid, which leaves taxpayers on the hook for about $30 billion...."