Credit-related expense due primarily to the impact of Hurricanes Harvey, Irma, and Maria, contributed approximately $1.0 billion pre-tax to provision for credit losses
Fannie Mae reported net income of $3.02 billion for the third quarter, which declined from both the quarter-ago and year-ago figures.
The company said the quarterly decrease was driven primarily by an increase in credit-related expense, which was principally caused by the impact of a hurricane-related provision for credit losses.
The third-quarter net income fell $177 million from the $3.2 billion net income reported for the second quarter and decreased $173 million from the approximately $3.2 billion net income in the same quarter in 2016.
Comprehensive income for the quarter totaled $3.05 billion, down $69 million from $3.12 billion a quarter ago but up $59 million from approximately $3.00 billion in the third quarter of 2016.
Credit-related expense during the quarter was due primarily to the impact of Hurricanes Harvey, Irma, and Maria, which contributed approximately $1.0 billion pre-tax to the provision for credit losses. Approximately 80% of the impact relates to single-family loans in Puerto Rico. A benefit driven by an increase in actual home prices and the redesignation of mortgage loans from held for investment to held for sale during the quarter partially offset the credit loss provisions.
As of Sept. 30, Fannie Mae had positive net worth of $3.6 billion. In case the Federal Housing Finance Agency declares a $3.0 billion dividend, Fannie Mae will pay that amount to the Treasury in December. Under the terms of its government conservatorship, Fannie’s profits are handed over to the Treasury each quarter.
“Fannie Mae is consistently delivering a steady stream of innovations to our customers. We see their challenges as Fannie Mae’s challenges, and we are listening to their feedback to make our customer solutions better and smarter,” Fannie Mae President and CEO Timothy Mayopoulos said. “As our third-quarter results demonstrate, our performance and focus on customers have put us in a strong position to continue serving all parts of the market. We are committed to working with customers to forge a stronger and safer housing finance system that provides opportunities that are affordable to the next generation of American homeowners and renters.”
During the quarter, Fannie Mae provided approximately $150 billion in mortgage financing to the market.
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The company said the quarterly decrease was driven primarily by an increase in credit-related expense, which was principally caused by the impact of a hurricane-related provision for credit losses.
The third-quarter net income fell $177 million from the $3.2 billion net income reported for the second quarter and decreased $173 million from the approximately $3.2 billion net income in the same quarter in 2016.
Comprehensive income for the quarter totaled $3.05 billion, down $69 million from $3.12 billion a quarter ago but up $59 million from approximately $3.00 billion in the third quarter of 2016.
Credit-related expense during the quarter was due primarily to the impact of Hurricanes Harvey, Irma, and Maria, which contributed approximately $1.0 billion pre-tax to the provision for credit losses. Approximately 80% of the impact relates to single-family loans in Puerto Rico. A benefit driven by an increase in actual home prices and the redesignation of mortgage loans from held for investment to held for sale during the quarter partially offset the credit loss provisions.
As of Sept. 30, Fannie Mae had positive net worth of $3.6 billion. In case the Federal Housing Finance Agency declares a $3.0 billion dividend, Fannie Mae will pay that amount to the Treasury in December. Under the terms of its government conservatorship, Fannie’s profits are handed over to the Treasury each quarter.
“Fannie Mae is consistently delivering a steady stream of innovations to our customers. We see their challenges as Fannie Mae’s challenges, and we are listening to their feedback to make our customer solutions better and smarter,” Fannie Mae President and CEO Timothy Mayopoulos said. “As our third-quarter results demonstrate, our performance and focus on customers have put us in a strong position to continue serving all parts of the market. We are committed to working with customers to forge a stronger and safer housing finance system that provides opportunities that are affordable to the next generation of American homeowners and renters.”
During the quarter, Fannie Mae provided approximately $150 billion in mortgage financing to the market.
Related stories:
Fannie Mae posts $3.2 billion in net income for Q2
Fannie Mae announces innovations to build on Day 1 Certainty
