Mortgage giants Fannie Mae and Freddie Mac have recently reported their respective incomes for the second quarter of 2017. Both Government-Sponsored Enterprises (GSEs) have seen these revenues as a proof of strong financial results and solid business practices. These GSEs are set to pay their dividends to the United States Department of Treasury by September of this year.
Fannie Mae Sees Increase in Net Income in 2Q
Fannie Mae has declared a net income of $3.2 billion in the second quarter of 2017. That equates to almost $0.5 billion increase from the $2.8 billion of net income during the first quarter. Its comprehensive income in the second quarter was $3.1 billion. Comprehensive income pertains to a statement of all the income and expenses in a given period.
In the second quarter, Fannie Mae reporteda net revenue of 5.4 billion and the net interest income of 5 billion. The said enterprise identified the lower guaranty fee income as a cause for the decrease in net interest income. Still, the mortgage enterprise reported a positive net worth of $3.7 billion as of June 30, 2017.
Freddie Mac’s Income Decline in 2Q, Up From Same Period in 2016
Freddie Mac, on the other hand, experienced a drop on a quarter-over-quarter basis. In the April-through-June period, it reported $1.66 billion as net income. Despite the decline from the first quarter, this GSE’s net income was up from the same period last year. This increase was caused by the increase in fees by lenders for guaranteeing mortgages in the April-June 2017 period. Its comprehensive income also dropped from 2.2 billion in the first quarter to 2 billion in the second quarter.
GSEs to Pay Dividends to Treasury on September
Fannie Mae is set to pay a total of $3.1 billion in dividends to the Department of Treasury in September of the FHFA declares the same dividend amount. Fannie Mae has paid $162.7 billion in dividends. Freddie Mac, despite lower income in the second quarter, said that they will pay the Treasury $2 billion in dividends in September 2017.