Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) Reports Net Income And Comprehensive Income For 1Q2014

Boston, MA 05/13/2014 (wallstreetpr) – Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) is a reputed government-sponsored enterprise. The company is licensed by the U.S. Congress in order to aid stability and liquidity in the secondary mortgage market. The recent story says that the government sponsored mortgage finance companies Freddie Mac and Fannie Mae will send the U.S. Treasury dividends after posting their quarterly profits. The U.S. based firms will pay the amount in bailout dividends totaling to $10.2 billion, and the profits are driven by the income accrued from legal settlements.

The litigation

The regulator had litigated 18 financial institutions, thereby bringing the claim that they misguided Freddie Mac and Fannie Mae about the reliability and security of mortgages. The lawsuits have lead to the legal settlements working out to be $16 billion till now.

Reported net and comprehensive income

Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), on the other hand, reported its comprehensive income and net income for the first quarter, 2014. The company posted a net income of $5.3 billion, which, in fact, is Fannie Mae’s ninth in-series quarterly profit. In addition, the mortgage firm also reported its comprehensive income for the quarter to be $5.7 billion.

The financial results of the business for the 1Q2014 incorporated the lump sum revenue of $4.1 billion achieved from the legal settlements concerning the private-label securities proceedings. More so, the U.S. based mortgage company announced an affirmative net value of $8.1 billion as on March 31, 2014 and is currently anticipating paying out $5.7 billion to Treasury in June, 2014.

Dividends

The company expects to pay the amount as a bonus on the “senior preferred stock” in the 2Q2014. It has also been reported by the company that it is backing up the housing recovery by delivering access to reasonable mortgages and also by assisting in building a transparent, sustainable and safe housing finance system. It seems that the company has lots of hopes in store for the future.

CEO’s statement

The CEO OF Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), Timothy Mayopoulos, stated that the company expects its annual earnings to be robust over the upcoming few years, however, significantly lower than that of the previous year. He added that the company’s earnings may differ from quarter to quarter depending on good many factors as variations in interest rates and fluctuations in home prices.

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Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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