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Fannie/Freddie Report Increased Profits
Friday, October 30, 2020
Both GSEs reported financial results for
the third quarter of 2020 that were significantly higher than both their Q2
2020 and their 2019 numbers. Fannie Mae's net and its comprehensive incomes were $4.2
billion and Freddie Mac's net and comprehensive incomes came in at $2.5 billion
and $2.4 billion, respectively. Fannie Mae's comprehensive income in the
second quarter was $2.5 billion and it was 4.0 billion a year earlier. The
company says the higher 3rd quarter results were due to higher
amortization income from higher mortgage prepayment activity as borrowers
refinanced into historically low rates. The company's net interest income was $6.7
million, up 879 million from the previous quarter. Year-to-date (YTD) the net
interest income is up $2.4 billion from the first nine months of 2019 to $17.8 billion.
Fee and other income increased by $3
million from the prior quarter to $93 million, but it is $132 million lower on
a YTD basis. Net investment gains for the quarter were $653.
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