Both government supported enterprises (GSE) reported increased profits in the second quarter of 2020 compared to Q1. Fannie Mae said its net comprehensive income was $2.53 billion compared to $476 million and Freddie Mac’s quarterly results were 1.94 billion, an increase of $1.32 billion from the previous period. Both companies had reported extraordinarily low net profits in Q1, largely due to a shift from credit-related income to credit-related expenses as allowances for loan losses were increased to reflect expected impacts from the COVID-19 pandemic. Freddie Mac also attributed the Q1 downturn to lower net interest income. Fannie Mae’s bottom line was down $833 million from its $3.37 billion net comprehensive income in the second quarter of 2019. Freddie Mac’s year-over-year change was a

2020-07-30 17:42:03

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Courtesy of Mortgage News Daily

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