Fannie Mae reported an annual net income of $12.3 billion and annual comprehensive income of $11.7 billion in 2016. Those figures come from the GSE’s Q4 report, in which Fannie Mae also reported a net income of $5 billion and comprehensive income of $4.9 billion for 2016.
The company reported a positive net worth of $6.1 billion as of the end of 2016, meaning Fannie expects to pay Treasury a $5.5 billion dividend in March. Fannie Mae paid $9.6 billion in dividends to Treasury in 2016. Counting the expected March payment, Fannie Mae will have paid a total of $160 billion in dividends to Treasury.
Timothy Mayopoulos, President and CEO of Fannie Mae, said the company’s 2016 numbers “reflect a multi-year drive to improve Fannie Mae’s business model, strengthen the housing finance system, and deliver innovation and certainty to customers.”
Fannie also reported $637 billion in mortgage financing last year, stating it was continuing to lay off risk to private capital in the mortgage market and reduce taxpayer risk through its credit risk transfer transactions. At year’s end, nearly a quarter of the loans in the company’s single-family conventional guaranty book of business, measured by unpaid principal balance, were covered by a credit risk transfer transaction, the report stated.
Fannie reported $1.5 billion in credit-related income in 2016, up from $834 million in 2015. Credit-related income in 2016 was driven by a benefit for credit losses “primarily resulting from an increase in home prices,” the report stated.
Fannie’s net fair value losses of $1.1 billion in 2016 were down 39 percent from 2015.
“We recognized fair value losses for 2016 primarily as a result of a decrease in the fair value of our risk management derivatives in the first half of 2016 due to declines in longer-term swap rates during the period,” the report stated. “These losses were partially offset by an increase in the fair value of our risk management derivatives in the second half of 2016 due to an increase in longer-term swap rates during the period.”
Fannie’s 2016 mortgage portfolio declined by 21 percent to $272.4 billion at the end of Q4. Its single-family guaranty book of business was $2.8 trillion.