Investors at Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Federal Home Loan Mortgage Corp (OTCBB:FMCC) have gone for years without recouping any profits from the two companies no matter how well they perform. The government has been the biggest beneficiary of whatever the two firms make as part of an agreement of the 2008 bailout package.

The government was forced to pump in $187.4 billion in 2008 to prevent the two companies from going down and consequently signing an agreement that makes it the sole beneficiary of whatever is made in terms of profits.

 Shareholders Push

Fannie Mae and Federal Home Loan Mortgage Corp (OTCBB: FMCC) having channeled $230.8 billion to Treasury means they have overpaid their bailout package. Shareholder and several hedge funds are reportedly running a campaign that they hope will change the current arrangement between the two firms and the government.

 However, their actions may turn out futile as all the payments that Federal Home Loan Mortgage Corp (OTCBB:FMCC) and Fannie Mae make to the government are considered dividends and not repayment of the bailout package. Shareholders efforts lie in the hands of Judge Margaret Sweeney, who has shown some remorse. The Judge has already shown some form of resentment to the government actions of plunging companies to conservatorship indefinitely.

 Concerns over Independence

The government on its defense maintains that profit sweep are legal especially in the case of Fannie Mae and Federal Home Loan Mortgage Corp (OTCBB:FMCC), which still needs billions of dollar in the capital if they are to be independent. Concerns have also been raised about the ability of the two agencies to remain profitable without having the government as the guarantee of mortgages.

The shareholders have a long way to go in their push to revert the earlier signed agreement between Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), Freddie Mac and the government. The government is expected to counter any arrangement that would revert its position, which has turned out to be lucrative in terms of impressive returns.