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DS News Webcast: Friday 11/6/2015

Just two days after fellow GSE Freddie Mac reported a net loss of 475 million dollars for Q3, Fannie Mae reported a net income of 2 billion dollars for the third quarter and a comprehensive income of 2 2 billion dollars. Though Fannie Mae was profitable in Q3, the Enterprise’s net income and comprehensive income both declined by more than 50 percent from the previous quarter when it reported totals of 4 point 6 billion dollars and 4 point 4 billion, respectively. The decline in net income was primarily due to fair value losses which were partially offset by credit-related income.

Fannie Mae reported a net worth of 4 billion dollars for the third quarter, which will result in a dividend payment to the Department of Treasury of 2 point 2 billion dollars in Q4. For the period of September 2008 through September 30, 2015, Fannie Mae has paid 142 billion in dividends to Treasury—more than 26 billion more than Fannie Mae received from taxpayers in the 2008 bailout.

The U.S. House of Representatives voted on Thursday to pass an amendment eliminating the use of guarantee fees on mortgages backed by Fannie Mae and Freddie Mac to fund a controversial 47 billion dollar transportation bill known as H.R. 22, or the Developing a Reliable and Innovative Vision for the Economy Act. The amendment removes the proposed delay in cuts to Fannie Mae’s and Freddie Mac’s g-fees and also strikes down the proposed reduction to the Fed’s fixed dividend rate for banks, which would limit the banks’ ability to lend.

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