Fannie Mae posts $3.2B profit in 2Q

WASHINGTON — Fannie Mae reported net income of $3.2 billion from April through June, up from a year earlier as the mortgage giant marked gains on its investments.

The government-controlled company released its second-quarter results Thursday. Washington-based Fannie Mae will pay a dividend of $3.1 billion to the U.S. Treasury next month if the company’s federal regulator agrees. That payment would bring the total dividends paid by Fannie to $165.8 billion.

Fannie received $116 billion from taxpayers when the financial crisis struck in September 2008. The government rescued Fannie and smaller sibling Freddie Mac after they suffered huge losses from risky mortgages in the housing market bust. Together the companies received rescue loans totaling about $187 billion. The housing market’s gradual recovery has made Fannie and Freddie profitable again.

Fannie’s second-quarter profit marked an increase from the $2.95 billion it earned in the same period of 2016.

Fannie reported investment gains of $385 million in the second quarter, swinging from a $9 million loss in the first quarter but slightly below its $398 million in gains in the second quarter last year. The company earned $5 billion in net interest income in the April-June period, down from $5.29 billion a year earlier.

On Tuesday, Freddie reported net income of $1.7 billion for the second quarter, up from $993 million a year earlier. Freddie will pay a dividend of $2 billion to the Treasury next month.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, worth about $5 trillion. Along with other federal agencies, they back roughly 90 percent of new home loans.

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