Quarterly earnings at the Federal National Mortgage Association improved, as did secondary activity and serious mortgage delinquency.
Fannie Mae revealed in its second-quarter earnings report that its pre-tax income during the period from April 1 through June 30 came to $5.6 billion.
Earnings at the government-controlled enterprise
improved compared to $4.8 billion earned in the same three-month period during the preceding year.
Results also were better than the $5.4 billion earned the previous quarter.
Fannie said it provided $111 billion in liquidity to the single-family market during the second quarter — financing 477,000 loans. Its single-family mortgage-backed securities market share was estimated at 36 percent.
Refinance share was
37.5 percent, sinking from the prior quarter’s 47.9 percent.
In its Monthly Summary Highlights June 2018, the Washington-based firm reported $46.195 billion in new business acquisitions during June, up from $42.138 billion in May to the best month since December 2017.
On a quarterly basis, new business acquisitions were $125.413 billion, not much different than $123.889 billion in the first quarter. But activity descended from $134.920 billion in the second-quarter 2017.
Full first-half new business acquisitions came to $249.302 billion.
Financing of $14.5 billion provided by Fannie during the second quarter funded 188,000 multifamily units.
Fannie’s total book of business ended June at $3.2477 trillion and included a $0.2258 trillion mortgage portfolio and $3.0219 trillion in outstanding MBS and other guarantees.
Three months earlier, the book of business was $3.2405 trillion, while it stood at $3.1754 trillion a year earlier.
Ninety-day single-family delinquency was
0.97 percent as of mid-2018 — the lowest it’s been since it was 0.90 percent in December 2007.
Serious mortgage delinquency tumbled from 1.03 percent as of May 31 and 1.01 percent as of June 30, 2017.
Multifamily delinquency of 60 days closed out the first half at 0.10 percent, retreating 3 basis points from the prior month but worsening 6 BPS from a year prior.
Fannie’s dividend payments to the Department of the Treasury while under conservatorship amount to $167.3 billion, far more than the $119.8 billion in draws it has taken.
A $4.5 billion payment to the Department of the Treasury is expected to be paid by Sept. 30.
