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Journal
FANNIE MAE
NET WORTH
RISES TO
14.6B
Fannie Mae recorded a net income of
$14.2 billion last year, including $4.4 billion
during Q4 2019.
The GSE's net worth rose to $14.6
billion by the end of the year. Based on
the current agreement with the U.S.
Department of the Treasury and the Federal
Housing Finance Agency (FHFA), the
company can retain quarterly earnings until
its net worth reaches $25 billion.
Fannie Mae provided more than $650
billion in liquidity to the mortgage market
in 2019, helping finance more than three
million purchases, refinances, and rental
units.
They were the largest issuer of single-
family mortgage-related securities in the
secondary market during 2019, with an
estimated market share of single-family
issuances of 37%.
Fannie Mae finances 25% of all single-
family mortgages in the U.S.
The GSE announced it made changes
to its single-family credit risk transfer
structure last year, increasing the company's
capital relief and reducing risk.
"Fannie Mae also began obtaining
credit protection on single-family reference
pools containing seasoned loans, increasing
the percentage of the company's book
covered by credit risk transfer, reducing the
company's capital requirements, and further
reducing risk," the release stated.
Fannie Mae's mortgage portfolio fell
to $153.6 billion at the end of 2019 from
last year's final number of $179.2 billion.
This is due to the decline in the company's
loss mitigation portfolio driven by sales of
reperforming loans.
Invest gains were $923 million during
Q4 2019 compared to $253 million in Q3
2019. Fannie Mae added that investment
gains totalled $1.8 billion in 2019—an
increase from last year's final number of
$952 million.
"The increase in investment gains for
the fourth quarter of 2019 and for the year
was driven primarily by an increase in gains
from sales of single-family held-for-sale
loans and available-for-sale securities,"
Fannie said.
