The highest earnings on record at the Federal National Mortgage Association have enabled the secondary lender, along with its government-controlled cousin Freddie Mac, to collectively dish out nearly $60 billion in dividends so far to the U.S. Department of the Treasury.
At $7.570 billion, Fannie Mae earned more in the final three months of 2012 than in any other quarter during its 75-year history.
Net income before taxes was $1.813 billion in the third quarter. In the year-earlier period, Fannie had a loss totaling $2.4 billion.
For all of last year, the Washington, D.C.-based firm had $17.220 billion in net income — also an all-time high.
Annual earnings swung from a $16.855 billion loss in 2011.
“The improvement in the company’s full-year and quarterly net income was due primarily to improved credit results driven by a decline in serious delinquency rates, an increase in home prices, higher sales prices on Fannie Mae-owned properties, and the company’s resolution agreements with Bank of America,” the report said.
Fannie Mae President and Chief executive Officer Timothy J. Mayopoulos said in the report that earnings are expected to remain strong for the next few years.
Over at rival Freddie Mac, fourth-quarter net income was reported in February at $4.5 billion, up from $2.9 billion in the third quarter. Full-year income at Freddie swung to an $11.0 billion profit during 2012 from a $5.3 billion loss in 2011.
Fannie said that it would maintain a valuation allowance of $58.9 billion on its deferred tax assets as of Dec. 31, 2012, instead of releasing it.
So far, Fannie has paid the U.S. Treasury Department $35.6 billion since being thrown into conservatorship in 2008, including $11.6 billion paid in 2012 and $4.2 paid in the first quarter of 2013.
Fannie has requested cumulative draws of $116.1 billion from the Treasury. No draw was taken by Fannie in the fourth quarter.
Freddie has paid out $23.8 billion in dividends and submitted $71.3 billion in Treasury draw requests.
McLean, Va.-based Freddie also didn’t request a fourth-quarter draw.
Fannie reported that its share of the single-family issuance market in 2012 was 49 percent, gaining from 48 percent in 2011, 44 percent in 2010 and 46 percent in 2009.
