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Fannie Profit Plummets; Forbearance Fears Confirmed

Posted To: MND NewsWire

Given their respective sizes, the economic dislocation created by the COVID-19 pandemic appears to have hit Fannie Mae harder than its competitor GSE Freddie Mac. Fannie Mae said on Friday that it had total comprehensive income of $0.476 billion in the first quarter of 2020, down from $4.266 billion the previous quarter. Freddie Mac, while down significantly, managed comprehensive income of $0.62 billion, compared to $2.430 billion in the fourth quarter of 2019. The company said the decrease in net income was due primarily to a shift from credit-related income to credit-related expense. It increased its allowance for loan losses to reflect those it currently expects to incur, including 4.1 billion attributed to the COVID-19 outbreak reflected in its $2.7 billion of credit-related expenses for…(read more)

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