Fannie Mae earnings drop in second quarter

Housing Wire, By Brena Swanson

Fannie Mae recorded a net income of $3.7 billion for the second quarter of 2014.

This is a drop compared to $5.3 billion in the first quarter of 2014, primarily due to a decline in the amount of income recognized from settlement agreements related to private-label mortgage-related securities sold to Fannie Mae.

Freddie Mac this morning also reported second quarter earnings.

However, this decline was partially offset by an increase in the company’s benefit for credit losses due primarily to higher home prices in the second quarter of 2014.

“An important takeaway is that this is the first quarter in the a long time that we did not have a big one time event such as a mortgage purchase resolution. This quarter gives you a good sense for a normalized environment for Fannie Mae,” Tim Mayopoulos, president and CEO, said on the earnings call.

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