Fannie Mae (FNMA/OTC) today reported net income of $2.7 billion in the
first quarter of 2012, compared to a net loss of $6.5 billion in the first quarter of 2011 and a net loss of
$2.4 billion in the fourth quarter of 2011. The significant improvement in the company’s financial
results in the first quarter of 2012 was due primarily to lower credit-related expenses, resulting from a
less significant decline in home prices, a decline in the company’s inventory of single-family realestate
owned (“REO”) properties coupled with improved REO sales prices, and lower single-family
serious delinquency rates. Fannie Mae does not require funding from Treasury for the first quarter of
2012. The company’s comprehensive income of $3.1 billion in the first quarter of 2012 is sufficient to
pay the first-quarter dividend of $2.8 billion.
Hopefully this is a sign that the US housing market is turning around. At the very least it seems have improved significantly from Q1 2011 based upon Fannie Mae’s profits.
Hopefully Freddie Mac has similar results to confirm a turn around trend. Mind you those profit & loss numbers are mind boggling.
I agree, and if the prices continue to improve, Fannie Mae may still be around for a few more years. I personally think they need to be a much smaller player, and not part of the ever growing federal government. Too many of the executives of this company were politically connected instead of good business people. Some should be in prison except for that.