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Fannie Mae Makes It Rain for Obama

Already sold: a home under final construction in Glenelg, Md.
Already sold: a home under final construction in Glenelg, Md.Photograph by Andrew Harrer/Bloomberg

Fannie Mae said this morning that its second-quarter profit nearly doubled, to $10.1 billion, as home prices surged and more consumers made good on their mortgage payments.

The federal government will collect every cent of that profit, per Fannie’s strange griffin-like status—it has the head of an Uncle Sam eagle and the body of a private-sector lion. The government will also get a $4.4 billion contribution from yesterday’s big earnings win by Freddie Mac, Fannie’s corporate cousin.