Strong Earnings at Fannie/Freddie After 4th Quarter Accounting Losses

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Posted To: MND NewsWire

Both government sponsored enterprises (GSEs) reported strong earnings in the first quarter of 2018. In separate announcements this week Freddie Mac said it had comprehensive income of $2.2 billion and Fannie Mae reported $3.9 billion. Both had posted heavily losses in the fourth quarter of 2017 due to changes in the tax law which necessitated write-downs of their net deferred assets. Freddie Mac said its comprehensive income and its net income of $2.93 billion were driven by a $0.4 billion benefit from the new corporate tax rate, and continued growth of its guarantee book of business. The book grew by 5 percent year-over-year to $2.05 trillion. The Comprehensive income was nearly identical to the first quarter of 2017, but the tax changes had reduced income in the fourth quarter from $2.1 billion…(read more)

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