The company recorded the increase primarily due to a reclassification of loans
Fannie Mae has reported net income of $4.45 billion for the second quarter, up from $4.26 billion in the first quarter and $3.20 billion in the second quarter of 2017.
The company said the improvement in net income was driven primarily by an increase in credit-related income due to the redesignation of loans from held-for-investment to held-for-sale. An improvement in home prices during the quarter also supported the increase.
Lower fair value gains during the quarter compared with the first quarter partially offset the increase.
Pretax income for the quarter was $5.59 billion, up quarter-over-quarter from $5.39 billion and year-over-year from $4.79 billion. Comprehensive income totaled approximately $4.50 billion, an increase from $3.94 billion last quarter and from $3.12 billion in the year-ago period.
Fannie Mae reported net worth of $7.5 billion as of June 30. As a result, the company expects to pay a $4.5 billion dividend to Treasury by September 30.
Single-family net income was $3.95 billion in the second quarter, compared with $3.68 billion in the first quarter. Multifamily net income was $504 million, down from $580 million in the previous period.
“Our strong quarterly results reflect solid fundamentals in our single-family and multifamily businesses,” Fannie Mae President and CEO Timothy Mayopoulos said. “Both segments are managing and distributing risk in sustainable, efficient, and innovative ways, and our guaranty book remains robust and stable.”
