Fannie Mae and Freddie Mac are likely to once again show a profit in the third quarter before making their dividend payments to the government. The net amount of assistance both agencies need from the government is also declining.
 
Both of these factors is taking pressure off of both the government and the housing sector. Not only is it also taking pressure off of whoever wins the White House but it’s also likely to spur additional action to shore up the improving trend.
 
The problem is that the housing financial structure still has problems. The government still backs over 90% of mortgages. There has been little progress in creating new structures that would incentivize private capital to step back up to the plate for residential housing risk.
 
So whoever wins the election today, November 6, the government—a.k.a. taxpayers—is likely to remain on the hook for housing for quite some time.

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