As the nation continues to show signs that the housing market is stabilizing and recovering which includes more people are buying homes than they were a year ago and new home construction has risen by more than 10 percent from 2011, Fannie Mae, the government-backed mortgage financier, announced this week that the organization posted a profit for the first quarter of 2012 and thus they feel that they no longer need any additional bailout money.
Over the course of the past 3 and a half years Fannie Mae has received nearly $116 billion from the Treasury and has paid back close to $23 billion in dividend payments.
Fannie Mae reported a quarterly net income of $2.7 billion putting it in the black compared to the $6.5 billion loss they reported in the first quarter of 2011.
Susan McFarland, Fannie Mae's chief financial officer, said in a statement, "We expect our financial results for 2012 to be significantly better than 2011. As our serious delinquency rate declines and home prices stabilize, we expect to reduce our reserves, which combined with revenue from our high-quality new book of business, will drive our future results."