Fannie Mae Posts $5.1 Billion Income, Needs No Treasury Capital

If you can believe it, Fannie Mae’s net income was $5.1 billion for the second quarter of 2012, and that tallies up to $7.8 billion for the first half of 2012. The quasi-agency’s new book of business was said to account for some 59% of single-family guaranty book of business as of June 30, and the group said that single-family serious delinquency rates have now declined for nine consecutive quarters.

Fannie Mae noted that the improvement was “almost entirely due to credit-related income, resulting primarily from an improvement in home prices, improved sales prices on the company’s real-estate owned properties, and a decline in the company’s single-family serious delinquency rate.” Its comprehensive income of $5.4 billion in the second quarter is sufficient to pay a $2.9 billion dividend to the Treasury.

No request for Treasury capital this quarter … Fannie Mae’s net worth was $2.8 billion as of June 30, after the total comprehensive income of $5.4 billion and after the $2.9 billion in senior preferred stock dividends paid to the Treasury.

JON C. OGG