Changes looming for U.S. home mortgage industry

 A record annual profit of $48.7 billion for Freddie Mac has lent further credence to the U.S. government's placement of Freddie Mac and Fannie Mae – who combined own or guarantee some 60 percent of U.S. homes – into conservatorship of the Federal Housing Financial Agency in 2008.

An $8.6 billion net income was reported Dec. 31 for Freddie Mac, allowing for a $10.4 billion payment to the U.S. Treasury. The profits are mostly a tax provision reversal, though recovery of the U.S. housing market has helped as well.

With Fannie Mae and Freddie Mac's combined payments, $202.9 billion will have been paid in, making a $15.4 billion return on investment compared to the initial $187.5 billion bailout. Taxpayers can safely say concerns over the government's actions are over.

Following those financial reports in 2014, U.S. Senate Banking Committee leaders have begun floating plans for legislation to replace Freddie Mac and Fannie Mae with a new government reinsurer: the Federal Mortgage Insurance Corp.; which would be financed by fees on lenders desiring such government securities.

"There is near unanimous agreement that our current housing finance system is not sustainable in the long term and reform is necessary to help strengthen and stabilize the economy," said Committee Chairman Tim Johnson in a statement. "This bipartisan effort will provide the market the certainty it needs, while preserving fair and affordable housing throughout the country."

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