Fannie Mae announced today it posted a $5.1 Billion profit for the 2nd Quarter April-June 2012.  Earlier this week, Freddie Mac posted a $3 Billion profit for the same period. These companies are taxpayer-owned and in government conservatorship. Combined, the two giants received $188 Billion in federal money the past 4 years & have paid back $46 Billion.  These companies are integral to a stabilized real estate market nationwide as they own or back approximately 60% of all U.S. mortgages. Losses and projected future write offs are down for both Fannie and Freddie, which is a clear sign of a recovery. In my opinion, the 3rd quarter profits July-Sept 2012 will be strong profits as well, with the peak summer buying season reflecting positive numbers. Time will tell, as some parts of the country have peak seasons in the spring. I also have a suggestion that these companies begin the process of loan modifications. In the process, they could generate billions with a nominal fee per borrower to adjust their loan payments to today’s low interest rates. The process would not require an appraisal to determine value; rather, the borrower’s authorization to modify the loan would simplify a process to benefit borrowers and the mortgage giants all. There would be less bad debt, less loss, less stress, more buying power into the economy from the borrower’s who are saving money on their mortgages. Big fat profits are good all around, so please share the wealth, Fannie & Freddie!