WASHINGTON (Reuters) - Fannie Mae (FNMA.OB), the nation's biggest mortgage finance company, on Thursday said it will pay $59.4 billion in dividends to the U.S. Treasury after a record profit in the first quarter that reflected a multibillion dollar tax-related gain. [...] The massive payment to the Treasury will reduce the net cost of Fannie Mae's taxpayer bailout to $21.1 billion. [...] Fannie Mae has now turned a profit for five straight quarters. Given its return to profitability, it had to consider when to start counting potential tax credits as part of its net worth. [...] "Unfortunately, these profits hurt GSE reform because they given the illusion mortgage finance is a great business," said Jim Vogel, head of interest rate strategy at FTN Financial in Memphis, Tennessee.
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Of course they aren't a "great business" the way freeways or bridges aren't "great businesses" either. But:
"Fannie Mae and Freddie Mac own or guarantee about half of all U.S. home loans."
which makes them "great" all by itself, because that's half of the market that doesn't "get" to be swindled by the private mortgage market.
/jordan