Fannie Mae posts positive 4Q results

Feb. 24, 2014 – Fannie Mae posted positive fourth-quarter results on its 2013 earnings, with net income of $6.5 billion – the company’s eighth consecutive quarterly profit – and is set to pay Treasury $7.2 billion in dividends next month.

Fannie Mae generated net income for the year of $84 billion, it said in a release last week. With its March dividend payment, Fannie Mae will have paid a total of $121.1 billion in dividends to Treasury. That exceeds the total $116.1 billion in draw requests to Treasury since 2008.

Fannie Mae has been in conservatorship since 2008. It has funded the mortgage market with about $4.1 trillion in liquidity since 2009.

Separate bills in the House and Senate, and a plan from the president, all call for the eventual elimination of Fannie Mae and Freddie Mac. Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, are reportedly close to sharing or introducing legislation on housing finance reform. Earlier this month, Johnson and Crapo reiterated their intention to push bipartisan housing finance reform in a joint statement.

NAFCU continues to advocate government-guaranteed credit union access to the secondary mortgage market and loan pricing that prioritizes loan quality over volume as part of any final housing finance reform plan.

 

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