Fannie Maes net income slows down in Q1

Fannie Maes net income slows down in Q1

The Fannie Mae reported first quarter profit, which is less than the profit in the same quarter last year. The huge derivative loss and decrease in credit related income has contributed to this lost. The mortgage finance firm will be sending the U.S. central bank $1.8 billion amount in June.  
The Washington based company have paid back total $138.2 billion to tax payers as of now. The financial crisis of 2008 resulted in the conservatorship of United States government on Fannie mae and Freddie Mac, another financial services provider. The Freddie was granted $71.3 billion relief package by the government went the company went bankrupt in 2008. Similarly the government sanctioned $116.1 billion to rescue Fannie Mae. The analysts projected $2.6 billion income in first quarter for the company but it only managed $1.9 billion. The income was $5.3 billion in the first quarter last year.  The finance firm doesn’t provide loans by its own.
The lenders sell its profitable loans to the company and the Fannie converts them into securities. The investors then have option of purchasing a loan for profit. In order to ensure the stability in the business, the company introduced minimum credit standards that borrowers have to fulfill before mortgage benefits. Lenders have also created their own set of stricter regulations in order to avoid the penalties from Fannie.  Chief Executive Officer Timothy J. Mayopoulos of Fannie Mae made the agreement with lenders public to clear the air over penalties issue last year. The agreement resulted in more secure lending.

 

Hot NewsGET THE HOTTEST

A Solution To Growing Needs Of Customers

A Solution To Growing Needs Of Customers

E-commerce is the conduct of business using electronic means like the internet and mobile applications. It also involves transactions in money using the electronic medium. There is an online transaction processing. E commerce has come to mean a transaction between the business and individual…

CONTINUE READING

Filmmaking- All You Need to Know

Filmmaking- All You Need to Know

In this short article, we will give you a couple of pointers on the best way to film yourself a motion picture. Filmmaking is considered be one of the immense vocations that most energetic craftsman attempt to handle. Before you know it, you will have awesome gems taking off the film tapes. You must…

CONTINUE READING

Why Hire a Mobile Development App Company

Why Hire a Mobile Development App Company

Progressing with the technological development, a company has initiated towards creating beneficial applications with a meaningful process. The experts are skilled enough to deal with complex technicalities making way for smoother business operations.  Affordable app development services …

CONTINUE READING

Latest News FROM OUR DESK

Delta Cancels Flights Due to Computer System Outage

Delta Cancels Flights Due to Computer System Outage

Earlier this month, Delta Air Lines had to cancel or delay some of its flights due to a power outage which resulted in the shutdown of its computer systems worldwide. It took about 17 hours after the power outage for the airline to go back to its normal operations. As expected, the passengers went…

CONTINUE READING

Stocks tumble on Wall Street after Brexit vote

Stocks tumble on Wall Street after Brexit vote

Speculations and fear brought about by the Brexit vote on Friday have caused several calamities in the stock market. Global stock markets lost $2 billion on Friday, while the sterling pound dropped to a historical 31-year low. Money also poured into government loans and safe-haven gold. Gold prices…

CONTINUE READING

Oils sand returns to production after Fort McMurray fire

Oils sand returns to production after Fort McMurray fire

The oil-sand companies operating in northern Alberta are trying to restart production after the fire of Fort McMurray. The market is not anticipating a shortage of more than one or two million barrels of oil a day due to sudden failure of supply. Some of the manufactures could begin their production…

CONTINUE READING

Why is Obama visiting Argentina's President Macri?

Why is Obama visiting Argentina's President Macri?

The United States’ relationships with Latin American countries are as complicated as its individual histories with each and their respective cultures and attitudes towards America. This week, President Obama is scheduled to visit President Macri, the newly elected leader of Argentina after…

CONTINUE READING