Fannie Mae, Freddie Mac unlikely to need more taxpayer money, feds say

The Washington Post reports:

Mortgage finance giants Fannie Mae and Freddie Mac are unlikely to need any more taxpayer money and will soon start paying back their loans, bringing the total cost of the government bailout of the firms to $124 billion by the end of 2014, according to federal officials.

To date, the companies, which play a central role in the Obama administration’s response to the housing crisis, have cost taxpayers $141 billion.

But soon, Fannie and Freddie will begin to generate enough profit to begin to pay back taxpayers. Nonetheless, officials say the companies are unlikely to ever repay all the money, cementing their status as the financial crisis’s most expensive legacy.

What’s more, if the economy worsens significantly, the companies might need $50 billion more in taxpayer aid, as profit would fall short of covering the losses associated with more homeowners falling into foreclosure.

When the GSE turn a profit again: we'll belief. It's time to separate housing from state.