Fannie Mae Whacked by New Tax Rules

Fannie Mae Whacked by New Tax Rules

Kevin Lamarque

The Republican tax overhaul took a big bite out of Fannie Mae, the mortgage giant that has been managed by the federal government since the 2008 financial crisis.

The new tax rules forced Fannie Mae to take a one-time charge of $9.9 billion based on the reduced value of its assets, producing a loss of $6.5 billion in the fourth quarter of 2017. As a result, Fannie Mae will seek an infusion of $3.7 billion from the Treasury Department.

House Financial Services Committee Chairman Jeb Hensarling (R-TX) was quick to complain about the “bailout,” saying that “taxpayers are sick and tired of getting ripped off by Fannie.”

The Wall Street Journal notes, however, that Fannie Mae has sent $166.4 billion to the U.S. Treasury since 2009, far more than the $119.8 billion it has received.