Magazine article Mortgage Banking

Fannie Mae Reports $3.9 Billion in Net Income in 3Q

Magazine article Mortgage Banking

Fannie Mae Reports $3.9 Billion in Net Income in 3Q

Article excerpt

On Nov. 6, Washington, D.C.-based Fannie Mae reported net income of $3.9 billion for the third quarter of 2014. The company said it had positive net worth of $6.4 billion as of the end of the third quarter, which will prompt the company to make a dividend payment to the Treasury Department of $4 billion.

With payment of the latest dividend in December, Fannie Mae will have paid a total of $134.5 billion in dividends to Treasury. That exceeds the total amount of draw requests of $116.1 billion the company has made since 2008.

The company said that the third-quarter net income of $3.9 billion and comprehensive income of $4 billion compare favorably to net income of $3.7 billion and comprehensive income of $3.7 billion for the second quarter.

Net revenues were $6.0 billion for the third quarter compared with $5.3 billion for the second quarter of 2014. The company said in a press release, "Higher net revenues were driven primarily by an increase in income from settlement agreements related to Fannie Mae's investments in private-label mortgage-related securities and an increase in net interest income."

The company said it recognizes almost all of its guaranty fee revenue in net interest income and the percentage of net interest income that came from guaranty fees on loans underlying Fannie Mae mortgage-backed securities (MBS) grew to roughly half in the first nine months of 2014. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.