Fannie Mae has reported a net income of $2.7 billion in the first quarter of this year, compared to a net loss of $6.5 billion in the first quarter of 2011 and a net loss of $2.4 billion in the fourth quarter of 2011. As a result, Fannie Mae will not require additional funding from the U.S. Department of the Treasury.
‘Today's results exemplify the tremendous progress we have made since 2009,’ says Michael J. Williams, president and CEO of Fannie Mae. ‘Our financial performance has improved significantly, and we successfully limited losses on the legacy book of business through our efforts to help homeowners avoid foreclosure. Our credit-related expenses have decreased substantially due, in part, to stabilizing home prices, lower delinquency rates, and selling foreclosed properties at market competitive prices.’
Fifty-six percent of Fannie Mae's single-family guaranty book of business, as of March 31, consisted of loans it had purchased or guaranteed since the beginning of 2009. Single-family conventional loans acquired by Fannie Mae in the first quarter had a weighted average FICO credit score at origination of 763 and an average original loan-to-value ratio of 70%.
Fannie Mae's total loss reserves, which reflect its estimate of the probable losses it has incurred on loans in its guaranty book of business, decreased to $74.6 billion as of March 31, down from $76.9 billion as of Dec. 31, 2011.