WASHINGTON—Government-sponsored enterprises Fannie Mae and Freddie Mac reported net incomes of $4 billion and $2.6 billion, respectively, in the third quarter of 2018. Although Fannie Mae's income was down from the second quarter, it was $1 billion higher than a year ago; Freddie Mac brought in roughly half of what it did a year ago.
Freddie Mac saw a slight increase in income from the previous quarter, mainly driven by guarantee fee income from single-family and multifamily businesses. The GSE's single-family originations fell 6%, and refinance activity fell 30%, NAFCU reported.
Fannie Mae said it provided $122 billion in liquidity to the single-family mortgage market in the third quarter and $18.2 billion in multifamily financing – both up from the previous quarter. The company's estimated market share of new single-family mortgage-related securities issuances was 40% this quarter, NAFCU said.
The GSEs will pay dividends to the U.S. Treasury in December as their capital reserves ended the second quarter above $3 billion: Freddie Mac will pay $2.6 billion; Fannie Mae will pay $4 billion.
Last year, Treasury and the Federal Housing Finance Agency (FHFA) announced a deal to allow the GSEs to reinstate $3 billion in their capital reserves. Comments on the agency's proposed rule to set capital requirements for the GSEs are due Nov. 16. NAFCU said it will submit comments based on its analysis of the plan and feedback received from member credit unions.
Freddie Mac and Fannie Mae have been under the FHFA's conservatorship since 2008.