Fannie Mae Forgoes Taxpayer Support in Q2

Following Tuesday's news that ""Freddie Mac"":http://www.freddiemac.com/ will not require a draw from Treasury this quarter, ""Fannie Mae"":http://www.fanniemae.com/portal/index.html announced the same on Wednesday in its second quarter earnings report.

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This is the second consecutive quarter that the GSE has not required a draw from Treasury. Before this year, Fannie May required a draw from Treasury for the previous 11 consecutive quarters.

The GSE reported a net worth of $2.8 billion with comprehensive income in the second quarter reaching $5.4 billion. This is up from $2.9 billion in the first quarter of this year.

As such, Fannie Mae was able to pay its senior preferred stock dividend payment of $2.9 billion to Treasury.

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As of the second quarter, the GSE has paid Treasury $25.6 billion in cash dividends, 22 percent of the $116.1 billion in cumulative draws it has received from Treasury.

Fannie Mae's EVP and CFO, ""Susan McFarland"":http://www.fanniemae.com/portal/about-us/company-overview/leadership/mcfarland.html, attributed the second quarter growth to ""a confluence of positive factors in the second quarter, including improved home prices, improvement in REO sales execution, and a continued decline in our single-family serious delinquency rate.""

The increase in home prices was perhaps most impactful. According to McFarland price appreciation ""resulted in credit-related income for the quarter.""

However, McFarland also noted, that despite outside factors such as pricing, ""we manage our business in a manner that positions Fannie Mae to provide value to taxpayers.""

Currently backing 46 percent of new single-family mortgage-related securities, Fannie Mae continues to dominate the secondary market as the largest issuer of mortgage-backed securities.

The GSE's share of 46 percent, however, is down from the 51 percent market share reported at the end of the first quarter of this year.

With a stated goal of providing market liquidity, Fannie Mae claims to have provided $2.7 trillion in liquidity since 2009. The GSE has backed 8.1 million refinances and 2.2 million home purchases.

Fannie Mae has also helped prevent 1.1 million foreclosures and acquired about 2.2 million refinances since 2009.