GSEs Post Q1 Results
May 1, 2019
Fannie Mae reported net income of $2.4 billion and comprehensive income of $2.4 billion for the first quarter, down from $3.2 million in both categories during the fourth quarter of 2018. The company reported a net worth of $5.4 billion as of March 31 and will pay a $2.4 billion dividend to Treasury by June 30.
Fannie Mae added that it provided $85.1 billion in liquidity to the single-family mortgage market in the first quarter, making it the largest issuer of single-family mortgage-related securities in the secondary market. The GSE also provided $16.9 billion in multifamily financing in the first quarter.
“Fannie Mae’s solid first quarter financial results demonstrate the strength of our business model, our risk management capabilities, and our customer focus,” said Fannie Mae CEO Hugh R. Frater. “We are enhancing our credit risk transfer programs and attracting more private capital into the U.S. mortgage market. We continue to drive technology innovations to help make the mortgage market more certain, efficient, and simple for our customers. And we’re working with customers and partners to address critical challenges such as the shortage of affordable homes and apartments across the country.”
Freddie Mac reported net income of $1.4 billion for and comprehensive income of $1.7 billion in the first quarter, compared to the fourth quarter’s net income of $1.1 billion comprehensive income of $1.5 billion. The GSE expected to make a $1.7 billion dividend payment to the Treasury by June. Freddie Mac provided approximately $86 billion in liquidity to the market in the first quarter that funded more than 300,000 single-family homes–of which approximately 192,000 of which were home purchase loans–and roughly 148,000 multifamily rental units.
"Freddie Mac produced a healthy quarter, generating comprehensive income of $1.7 billion, up 13 percent from the fourth quarter," said CEO Donald H. Layton. "Our guarantee book of business over the prior year grew five percent, demonstrating our heightened competitiveness, and credit quality remains strong. We also delivered on our mission, making home possible for nearly 450,000 families. These results demonstrate how the transformed Freddie Mac today is a well-run financial institution that produces solid earnings, serves its customers, protects taxpayers and fulfills its mission."
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