Fannie Mae Posts Sixth Consecutive Profitable Quarter

Posted by Patrick Barnard on August 08, 2013 No Comments
Categories : Residential Mortgage

Just a day after mortgage finance company Freddie Mac reported that it raked in $5 billion in the second quarter – the seventh straight profitable quarter for the government-sponsored enterprise (GSE) and the second largest in its history – sister company Fannie Mae reported net income of $10.1 billion, its sixth consecutive profitable quarter.

Fannie Mae reports that it earned comprehensive income of $10.3 billion for the second quarter, compared to $5.1 billion for the second quarter of 2012. The firm will pay taxpayers $10.2 billion in dividends in September, bringing the amount paid to the U.S. Treasury since its bailout to $105 billion.

Senior preferred stock outstanding and held by the Treasury remained at $117.1 billion as of June 30, as dividend payments do not offset Treasury draws.

Fannie Mae has funded the mortgage market with approximately $3.7 trillion in liquidity since 2009, the GSE reports.

The firm had a positive net worth of $13.2 billion as of June 30.

The increase in revenue was driven primarily by continued stable revenues and was boosted by a significant increase in home prices in the quarter, which resulted in a reduction in the company's loss reserves.

Fannie Mae says the year-over-year improvement has been driven mainly by gains on its assets recorded at fair value in the second quarter as a result of increases in interest rates, compared with fair value losses in the second quarter of 2012, as well as an increase in credit-related income.

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