Fannie Mae posted a profit of $10.1 billion in the second quarter of 2013, nearly double the $5.1 billion that it earned in the second quarter of 2012, according to the company’s quarterly earnings report.
Stable revenues and a jump in home prices that reduced the company’s loss reserves helped boost profits, Fannie Mae said. Gains on the values of its assets that were driven by higher interest rates contributed to year-over-year growth, and so did increased credit-related income, according to the mortgage giant.
The company said it will pay a $10.2 billion dividend to the Treasury.
Taxpayers bailed out Fannie Mae and Freddie Mac in 2008 when the two companies teetered on the brink of bankruptcy due to mortgage-related losses.
Since then, the companies have remained in government conservatorship. Currently, the Treasury owns $117.1 billion in senior preferred stock of the company, Fannie Mae said. Source: Fannie Mae