Fannie Mae, the government-sponsored enterprise that backs the majority of conventional mortgages, is not immune to the sharp decline in mortgage refinances.
The enterprise reported $7.5 billion in first quarter revenue, a $700 million jump from 2021. But net income income was down 12% from nearly $5 billion first quarter 2021, to $4.4 billion this quarter. Fannie Mae’s net worth is now $51.8 billion, up from $47.4 billion at the end of last year.
Fannie Mae’s net income decrease was mainly due to the expense of managing credit risk on mortgage loans. That’s because as fixed-term mortgage rates rise, borrowers are less details ⇒
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