WASHINGTON, DC — Fannie Mae (FNMA/OTC) reported net income of $2.9 billion and comprehensive income of $2.9 billion for the second quarter of 2016. The company reported a positive net worth of $4.1 billion as of June 30, 2016. As a result, the company expects to pay Treasury a $2.9 billion dividend in September 2016.
“We had another quarter of solid financial performance,” said Timothy J. Mayopoulos, president and chief executive officer. “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.”
Fannie Mae’s net income of $2.9 billion and comprehensive income of $2.9 billion for the second quarter of 2016 compares to net income of $1.1 billion and comprehensive income of $936 million for the first quarter of 2016. The increase in net income was due primarily to:
- Lower fair value losses in the second quarter of 2016 driven by smaller decreases in longer-term interest rates during the quarter.
- Higher credit-related income in the second quarter of 2016 attributable primarily to an increase in home prices and a decrease in actual and projected mortgage interest rates, as well as a decrease in foreclosed property expense.
- Higher net revenues driven primarily by an increase in mortgage prepayments.