Fannie Mae Reports $3B Profit in Third Quarter

Fannie Mae today said that it earned net income of $3 billion in the third quarter, down from $3.2 billion in the second quarter. The decrease was largely due to higher credit-related expenses mainly from losses following the recent hurricanes, which was partially offset by a settlement over private mortgage-backed securities totaling $975 million.

Fannie will pay a $3 billion dividend to the U.S. Treasury in December, bringing its total payments to $168.8 billion since it entered federal conservatorship in 2008. Fannie Mae and Freddie Mac combined have returned $283.6 billion to taxpayers over that time.

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Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and editorial director at the American Bankers Association, where she oversees ABA Daily Newsbytes.