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Taxpayers Net $34 Billion Since Fannie Bailout

Mortgage News

Since the Federal National Mortgage Association was taken over by the government during the financial crisis, taxpayers have netted more than $34 billion.

Prior to federal income taxes, Fannie Mae earned $4.3 billion from April 1 through June 30 of this year. Earnings rose from $1.7 billion in the first quarter.

The Washington-based government-controlled enterprise discussed the details about its financial performance in its second-quarter 2016 earnings report.

Earnings tumbled, though, from $6.9 billion in the second-quarter 2015.

Fannie noted that it expects guaranty fees to continue to account for a growing share of its net interest income.

The report indicated that
726,000 housing units were financed during the second quarter of this year, more than 627,000 three months earlier but just short of 754,000 one year earlier.

The latest total included
585,000 residential units and 141,000 multifamily units.

Fannie said it provided around $145 billion in mortgage financing during the three months ended June 30, 2016.

Single-family acquisitions finished the latest three-month period at $135.0 billion, more than the $102.2 billion in volume during the first quarter.

Acquisitions also accelerated from $128.1 billion in the second-quarter 2015.

During the six months ended June 30, 2016, single-family acquisitions totaled $237.2 billion.

“The company was one of the largest issuers of single-family mortgage-related securities in the secondary market in the second quarter of 2016, with an estimated market share of new single-family mortgage-related securities issuances of 38 percent, compared with 37 percent in the first quarter of 2016 and 37 percent in the second quarter of 2015,” the report stated.

Refinance share during the first-half 2016 was 54 percent versus 55 percent for all of last year.

The single-family guaranty book of business was $2.82 trillion as of mid-2016,
the same as of March 31.

The June 30, 2016, total book of business at Fannie stood at
$3.10 trillion.

Multifamily new business volume totaled $22.8 billion during the entire first-half 2016.

The multifamily guaranty book of business finished the most-recent period at $0.2252 trillion.
Three months earlier, the total was $0.2207 trillion.

Including a planned $2.9 billion dividend payment in September, total dividends paid to the Department of the Treasury are at $151.4 billion.

Dividends earned by the government are far in excess of the $117.1 billion in cumulative draws it has taken since its conservatorship began in September 2008.

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