Fannie Mae has reported net income of $4.01 billion for the third quarter, down from $4.46 billion in the second quarter but up from $3.02 billion in the year-ago period.
The company said the quarterly drop was primarily driven by a decrease in credit-related income due primarily to a reduction in the benefit from the redesignation of loans from held-for-investment to held-for-sale and a smaller improvement in home prices. Higher fair value gains partially offset the decrease.
Pre-tax income totaled $5.06 billion during the quarter, down from $5.59 billion in the previous quarter but up from $5.55 in the third quarter of 2018. Comprehensive income was $3.98 billion for the third quarter, down from $4.46 billion in the second quarter and up from $3.02 billion from the same period in 2017.
“Fannie Mae’s strong third-quarter results reflect the company’s positive momentum, the strength of our business, and our strategic direction,” interim CEO Hugh Frater said. “We are focused on serving our customers, helping them navigate market headwinds, and enabling a mortgage process that is better, faster, cheaper, and safer.”
Fannie Mae provided $18.2 billion in multifamily financing in the third quarter, which enabled the financing of 206,000 units of multifamily housing. More than 90% of the multifamily units the company financed were affordable to families earning at or below 120% of the area median income, providing support for both affordable and workforce housing.
Additionally, the company reported a net worth of $7.0 billion as of Sept. 30. As a result, Fannie Mae expects to pay a $4.0 billion dividend to Treasury by Dec. 31.