Home >> News >> Data >> Fannie Mae Fields Net Income, Evading Treasury Draw
Print This Post Print This Post

Fannie Mae Fields Net Income, Evading Treasury Draw

""Fannie Mae"":http://www.fanniemae.com/portal/index.html revealed that it produced $2.7 billion in net income for the first quarter this year, enough to prevent another draw from the ""Treasury"":http://www.treasury.gov/Pages/default.aspx, a first for the mortgage giant since it entered federal conservatorship in 2008.


The favorable results offer a significant difference to a net loss of $6.5 billion from the same quarter last year, along with a net loss of $2.4 billion by the fourth quarter.

Fannie Mae chalked up the net income to reduced credit-related expenses, which it tied to fewer single-family serious delinquency rates and stabilizing home prices.


The company paid a dividend of $2.8 billion to Treasury for the first quarter. Total loss preserves, which reflect estimated probable loss in guaranty books of business, fell to $74.6 billion by the end of March.

""Today's results exemplify the tremendous progress we have made since 2009,"" Michael Williams, the outgoing president and CEO, said in a statement. ""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.""

Net worth for the company hovered at $268 million by the end of March, which it said reflects $3.1 billion in total comprehensive income. Treasury's preference for senior preferred stock stayed at $117.1 billion.

Despite net income for the first quarter, Fannie Mae sustains a debt for more than $180 billion in taxpayer funds it has received with Freddie Mac since 2008.

A strategic plan proposed by the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ earlier this year said that it was unlikely either GSE could repay losses incurred by taxpayers under any scenario.

""Freddie Mac"":http://www.freddiemac.com/ recently reported that it saw $577 million in net income over the first quarter, offset by $19 million in draws it anticipated from Treasury.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

Check Also

Pending Home Sales Drop on Monthly, Yearly Basis

“Today’s data signal that home sales activity is likely to remain steady, at a low level, over the next few months as limited options and significant affordability challenges weigh on buyers,” said Realtor.com Senior Economic Research Analyst Hannah Jones.