The Federal National Mortgage Association reported that it earned less last year than in 2014, while its annual single-family acquisitions were higher.
The government-controlled enterprise reported that it provided
approximately $116 billion in liquidity to the mortgage market in the fourth-quarter 2015.
Washington-based Fannie Mae covered the numbers, as well as other operational and financial statistics, in its fourth-quarter 2015 earnings report.
Liquidity provided wasn’t as much as in the previous three-month period, when the number was $132 billion.
Total annual mortgage market
liquidity provided in 2015 reportedly was $516 billion.
Market liquidity provided reportedly financed 954,000 home purchases, 1,188,000 refinances and 569,000 multifamily units.
During the final three months of last year, single-family acquisitions amounted to $105.6 billion.
Residential business slowed compared to the previous three-month period,
when a total of $124.5 billion in single-family acquisitions were made.
Single-family acquisitions for all of 2015 came to $471.4 billion, more than the $369.8 billion the prior year.
Refinances — including loans closed through the Home Affordable Refinance Program and Refi Plus acquisitions — accounted for 55 percent of last year’s single-family volume.
Refinance share increased from 48 percent in 2014.
Out of Fannie’s $3.0994 trillion total book of business as of the end of last year, $2.7745 trillion was
single-family conventional guaranty.
Properties in California secured loans that made up 20 percent of the single-family book, while another 6 percent were in Texas, 6 percent were in Florida, 5 percent were in New York and 4 percent were in Illinois.
“The single-family serious delinquency rate for Fannie Mae’s book of business has declined for 23 consecutive quarters since the first quarter of 2010, and was 1.55 percent as of Dec. 31, 2015, compared with 5.47 percent as of March 31, 2010,”
the report said.
The multifamily guaranty portion of the Dec. 31, 2015, total book of business worked out to $0.2118 trillion.
Income prior to federal income taxes improved to $3.6 billion from $3.0 billion in the third quarter and $2.1 billion in the fourth-quarter 2014.
For all of 2015, however, pre-tax income declined to $16.2 billion from $21.2 billion the prior year.
Factoring in an anticipated $2.9 billion first-quarter dividend payment to the Treasury Department, Fannie has paid out $147.6 billion in total dividends to the Treasury since being thrust into conservatorship in September 2008.
The dividends exceed total draws taken by the secondary lender, which amount to $116.1 billion.
“We are listening closely to our customers so we deliver industry-leading solutions that make doing business with us easier, more efficient, and more certain,” Fannie Mae President and Chief Executive Officer Timothy J. Mayopoulos stated in the report. “We are evolving our business model so we better serve the industry and taxpayers, and fulfill our essential role in making affordable mortgage and rental options available for millions of people across the country.”
