A Decade Out From the Financial Crisis, Fannie Mae Has Bounced Back in a Big Way
Fannie Mae is back in the black and going entrepreneurial.
Yes, the same Fannie Mae that U.S. taxpayers bailed out during the financial crisis. The company is now profitable and has paid $50 billion more than the original $116 billion bailout it received from the U.S. Treasury.
The man behind the dramatic turnaround is CEO Tim Mayopoulos. “For all taxpayers, that’s a happy story,” he tells Fortune.
Fannie Mae is one of the nation’s biggest financial institutions. With revenues of more than $100 billion, it ranks 20th on the Fortune 500 list of America’s largest companies. But, unlike private financial institutions and banks, it is a government-sponsored enterprise.
Mayopoulos says that even though Fannie Mae is in better financial shape, the U.S. government still expects the company to continue turning over its profits to the U.S. Treasury. It’s up to Treasury Secretary Steve Mnuchin and Congress to decide when those payments stop and what changes will be put in place to protect taxpayers’ money.
Meanwhile, Mayopoulos is making his own changes. He is innovating Fannie Mae’s archaic lending procedures and going digital. “We are very entrepreneurial and we’ve been very focused on bringing all the new technologies and all the change that all the other businesses are dealing with to housing finance,” he says.
Watch the video above for more of our conversation with Mayopoulos.