Federal National Mortgage AssctnFnni Me (OTCBB:FNMA) was a notable decliner during Tuesday’s trading session. The stock declined by close to 2% on the back of high volumes, which were 1.1 times the daily average. The stock has been trending lower since the beginning of the year forming lower tops and lower bottoms, which are indicative of the fact that bears are in total control. The stock currently trades below all daily moving averages. The MACD indicator continues to trend lower in the bearish zone exhibiting no signs of a reversal. Traders see the stock heading to $1.998 in the near term.
Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has made public results for the third quarter. As per the reports, comprehensive income for the quarter was $2.2 billion, whereas the net income was $2 billion.
Other Financial And Non Financial Highlights
Fannie Mae anticipates that it would be paying about $2.2 billion in the form of dividends to Treasury in December 2015. With this step, the dividend amount paid by Fannie Mae to Treasury will go past $144.8 billion up till December 2015. However, it doesn’t cut down Treasury’s prior draws that total $116.1 billion posts-2008.
During 3Q2015, Fannie May provided around $132 billion to the national mortgage market to enhance the liquidity, which helped many families to rent, buy or refinance their homes. Most of the people have this desire to own a house, and Fannie Mae has done an amazing work to fulfill their dreams.
It executed about 29,000 workout solutions through government sponsored programs and other proprietary programs during the same quarter, which helped many distressed families to avoid foreclosure or retain their homes. The importance of private capital in the mortgage market can never be neglected. Through its Credit Insurance Risk Transfer and Connecticut Avenue Securities (CAS), Fannie Mae didn’t only enhance this importance, but also reduce the overall risk of a taxpayer.
Since 2013, these two transactions have transferred a significant amount of credit risk on the single-family loans to the private market. According to an estimate, the total principal value of these mortgage loans is around $464 billion. The senior management of Fannie Mae intends to continue these efforts in the coming months as well to ensure that the situation in the national mortgage sector can improve with the passage of time. Further details of such initiatives will be announced by Fannie Mae from time to time in the future.