Current Weather
The Spy FM

Fannie Mae Books $10.1 Billion In Second-Quarter Profits

Filed by KOSU News in US News.
August 8, 2013

Driven by a recovery in the U.S. housing market, Fannie Mae, the giant mortgage finance company, netted profits of $10.1 billion in the second quarter of 2013, its sixth consecutive quarter with positive results. The company, which has operated under federal conservatorship since 2008, reported its earnings Thursday.

Fannie Mae cited “a significant increase in home prices in the quarter” for its profit, which nearly doubled that of last year’s second quarter.

The strong showing leaves Fannie Mae with a net worth of $13.2 billion. Because federal rules require it to maintain a reserve of $3 billion, the company will pay $10.2 billion to the U.S. government this September. Fannie Mae says the payment will bring the total it has delivered to around $105 billion, following a federal rescue in 2008.

To survive the mortgage crisis that came to a head in the autumn of 2008, Fannie Mae received more than $116 billion from the U.S. government.

In its quarterly report, Fannie Mae says it “expects to remain profitable for the foreseeable future,” with stable revenues and strong earnings. It also said it will pay “substantial” income taxes to the U.S. Treasury.

As we reported yesterday, the other large government-backed mortgage company, Freddie Mac, earned $5 billion in the first three months of 2013.

The future of the U.S. mortgage industry is the subject of debate in Washington, with President Obama saying this week that “private lending should be the backbone of the housing market,” as The Wall Street Journal reports. [Copyright 2013 NPR]

Leave a Reply

5AM to 9AM Morning Edition

Morning Edition

For more than two decades, NPR's Morning Edition has prepared listeners for the day ahead with two hours of up-to-the-minute news, background analysis, commentary, and coverage of arts and sports.

Listen Live Now!

9AM to 10AM The Takeaway

The Takeaway

A fresh alternative in morning news, "The Takeaway" provides a breadth and depth of world, national and regional news coverage that is unprecedented in public media.

View the program guide!

10AM to 11PM On Point

On Point

On Point unites distinct and provocative voices with passionate discussion as it confronts the stories that are at the center of what is important in the world today. Leaving no perspective unchallenged, On Point digs past the surface and into the core of a subject, exposing each of its real world implications.

View the program guide!

Upcoming Events in your area (Submit your event today!)

Streaming audio and podcasts

Stream KOSU on your smartphone

Phone Streaming

SmartPhone listening options on this page are intended for many iPhones, Blackberries, etc. with low-cost software applications available to listen to our full-time web streams, both News on KOSU-1 and Classical on KOSU-2.

Learn more about our complete range of streaming services

We're perfecting the patient experience - Stillwater Medical Center