Fannie Mae ends first quarter in the black
Posted on Friday, May 11, 2012 at 2:56:34 PM
The economy is improving, and no other symbol is more indicative of this change than the fact that federally-backed Fannie Mae posted profits for the first quarter of 2012. For the first time since the company was seized in September 2008, it does not need to draw from taxpayer funds to get out of the red, reports DS News.
Mortgage giant Fannie Mae reported a $2.7 billion profit during the first three months of 2012. This is a big change from the reportedly $2.4 billion loss of the previous quarter and the $6.5 billion loss experienced during the same time period last year, reports the Washington Post.
According to the news source, the company is attributing the profits to improvements in the nation’s housing market, which includes increases in residential financing applications, stabilizing home prices and falling delinquency rates.
"It’s an indication of what the earnings power of the company is and can be in the future, and an indication that Fannie Mae has the potential to deliver a lot of value to the taxpayers," the firm’s chief financial officer, Susan McFarland, told the Washington Post.