Investments

Fannie Mae makes $3bn; one-third of single family now private-risk transfer

Paid $3.1bn to Treasury

The largest financier of single-family homes in the nation, Fannie Maemade $3 billion in the third quarter.

That’s a decrease of $177 million from the second quarter of 2017 driven primarily by hurricane-related provision for credit losses.

However, "Fannie Mae expects to remain profitable on an annual basis for the foreseeable future," the filing states.

In its earnings filing Thursday morning, Fannie stated the increase in credit-related expense was partially offset by income from a settlement agreement resolving legal claims relating to private-label mortgage-related securities the company purchased.

Freddie Mac earnings earlier this week stated a similar situation.

The government-sponsored enterprise continues to provide capital to the government: Fannie Mae also paid a $3.1 billion dividend to Treasury in September 2017. Through the third quarter of 2017, the company paid a total of $165.8 billion in dividends to Treasury.

Fannie Mae’s credit risk transfer business continues to grow, in which the GSE transfers a portion of the mortgage credit risk on some of the recently acquired loans in its single-family book of business to private investors.

As of September 30, 2017, $884 billion in single-family mortgages or approximately 31% of the loans in the company’s single-family conventional guaranty book of business, measured by unpaid principal balance, were covered by a credit risk transfer transaction.

CEO Timothy Mayopoulos said in a statement: “As our third quarter results demonstrate, our performance and focus on customers have put us in a strong position to continue serving all parts of the market. We are committed to working with customers to forge a stronger and safer housing finance system that provides opportunities that are affordable to the next generation of American homeowners and renters.”

Most Popular Articles

Caliber Home Loans CEO Sanjiv Das steps down

Sanjiv Das, CEO of Caliber Home Loans, is stepping down as CEO of the company, less than one year after New Residential Investment Corp. (Newrez) acquired the mortgage lender and servicer, sources familiar with the situation confirmed. 

Latest Articles

Opinion: Don’t shrink the GSEs’ market footprint 

The CHLA’s Scott Olson asks: What is the proper role of the GSEs and what authority should FHFA have to shrink the GSEs’ market footprint?

Jan 25, 2022 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please