Industry News

Fannie Mae files annual report — for 2005

Profits up, but trend not foreseen to extend into 2006

As it catches up in its financial reporting, Fannie Mae said today that 2005 profits totaled $6.3 billion -- up 26 percent from 2004 -- but warned net income for 2006 will be lower because of higher borrowing costs and reductions in interest income. Fannie Mae, which filed its annual report for 2004 in December, fell behind in financial reporting after management and accounting scandals forced the company to restate results for 2002, 2003 and part of 2004. The government-sponsored mortgage repurchaser says it will release its 2006 annual report by the end of 2007. In filing its 2005 annual report with the Securities Exchange Commission today, Fannie Mae provided some information on 2006. The company said its investment portfolio totaled $2.5 trillion as of Dec. 31, 2006, or 23 percent of U.S. residential mortgage debt. The portfolio includes loans Fannie Mae repurchases to provide liquidity to lenders, as well as mortgage-backed securities that the company issues and sells to investors...