Fannie Mae will pay the Treasury Department $5.7 billion by June 30, an amount reflecting the profits the U.S.-owned mortgage financier reported for the first quarter.
Washington-based Fannie Mae, which has operated under federal conservatorship since 2008, had net income of $5.3 billion for the three months ended March 31, according to a regulatory filing today. That included more than $4 billion from legal settlements relating to private-label securities sold to the company in the run-up to the credit crisis.
“While the company expects its annual net income to remain strong over the next few years, the company expects its annual net income to be substantially lower than its net income for 2013,” Fannie Mae (FNMA) said in a statement. The company earned a record $84 billion in 2013.
Fannie Mae and Freddie Mac (FMCC) were seized by regulators in September 2008, just before the failure of Lehman Brothers Holdings Inc., amid losses that pushed them toward collapse. The companies provide liquidity to the mortgage market by buying loans and packaging them into guaranteed securities.
Fannie Mae received $116 billion in bailout aid from the Treasury and will have sent a total of $126.8 billion back to the U.S. after its next payment. The amount counts as a return on the U.S. investment and not as a repayment of the aid.
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