Fannie Mae 2Q net income jumps to $2.9B

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Fannie Mae’s net income improved further in the second quarter, with the company posting net income of $2.9 billion and comprehensive income of $2.9 billion for the second quarter of 2016.

This is a jump from the company’s first-quarter’s net income of $1.1 billion, which took a hit from fair value losses that were, like others, driven by decreases in longer-term interest rates negatively impacting the value of the company’s risk management derivatives. 

The company reported a positive net worth of $4.1 billion as of June 30, 2016. As a result, it will pay Treasury a $2.9 billion dividend in September 2016.

After September, the company will have paid a total of $151.4 billion in dividends to Treasury.

“We had another quarter of solid financial performance,” said Timothy Mayopoulos, president and CEO.

“We are carrying through on actions to strengthen our company, support the housing market, and bring innovation to the market for the benefit of consumers, lenders, and taxpayers. We remain a steady, continuous source of mortgage financing to ensure broad access to quality rental housing and predictable long-term mortgages, including the 30-year fixed-rate mortgage,” he continued. 

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