Fannie Mae Reports Profits Have More Than Doubled
Secondary mortgage market giant Fannie Mae said last week that the ongoing mortgage boom helped it more than double its third-quarter profits to $2.7 billion, or $2.69 a share, up from $994 million, or 98 cents a share, for the same period last year. The company reported it purchased $254 billion in mortgages during the period, growing its mortgage portfolio by 62%. Through the first three quarters Fannie's profits rose by 54% to $5.7 billion, or $5.70 a share, from $3.7 billion, or $3.59 a share, for the first nine months last year.
Third quarter performance was aided by booking $472 million in unrealized gains on the company's derivatives portfolio, compared to a loss of $1.4 billion in the third quarter last year.