May 14th, 2013
Fannie Mae earned a pre-tax income of $8.1 billion in the first quarter of 2013, compared to $2.7 billion from the same period in 2012. This income is the largest in the company’s history, boosting confidence across the real estate sector.
According to National Mortgage Professional Magazine, Housing Policy Council President John Dalton has expressed optimism in light of the report.
“The Fannie Mae report is another indication of the continued increase in the quality of mortgages being originated by the industry today and is a positive sign of the recovery of the mortgage and housing market,” Dalton said.
The increase in income has allowed Fannie Mae to disburse $58.7 billion to the Treasury, bringing gross returned funds to $95 billion. The mortgage lenders borrowed a total of $134 billion in bailout funds after the economic crash. According to the Washington Times, this large financial boon will allow the Treasury to delay raising its own borrowing limit, a positive sign for Congress, which will be able to more slowly address the federal government’s stance on debt.
Fannie Mae has been able to boost their profits through the steadily improving housing market, and by guaranteeing loans at a higher fee to lenders. More mortgage loans have been coming through as well – in combination with the higher fees, this traffic has allowed for Fannie Mae to increase profits at a fast pace.