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Fannie Mae Posts Earnings

Fannie Mae, (NYSE:FNM), today reported operating net income for the first quarter of 2001 of $1.238 billion, a 16.6 percent increase compared with the first quarter of 2000.

Operating earnings per diluted common share (Operating EPS) of $1.20 were 17.6 percent above the same period in 2000.

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Operating net income and earnings per share exclude the one-time cumulative change in accounting principle and the quarter-to-quarter variability in the market value of purchased options which Financial Accounting Standard 133 (FAS 133) now requires to be included in the income statement.

Net income and earnings per diluted common share (EPS) for the first quarter of 2001 including these FAS 133 items were $1.293 billion and $1.25, respectively.

Fannie Mae's business volume - mortgages purchased for portfolio plus mortgage-backed security (MBS) issues acquired by other investors -- totaled $105.6 billion in the first quarter of 2001 compared with $50.8 billion in the first quarter of 2000.

The first quarter's business volume consisted of $58.7 billion in portfolio purchases and $46.9 billion in MBS issues acquired by investors other than Fannie Mae's portfolio.

Retained commitments to purchase mortgages were $76.3 billion in the first quarter of 2001, more than triple the $25.1 billion in commitments in the first quarter of 2000 and $11.8 billion higher than the previous record in the fourth quarter of 1998.

Fannie Mae's combined book of business -- the net mortgage portfolio and outstanding MBS held by investors other than Fannie Mae's portfolio -- ended the first quarter of 2001 at $1,366 billion. Fannie Mae's book of business rose at a compound growth rate of 16.9 percent during the quarter ended March 31, 2001.

This growth was fueled by a $33.3 billion increase in the net mortgage portfolio to $641 billion, a compound growth rate of 23.8 percent. Outstanding MBS increased at an 11.2 percent compound rate during the quarter to $726 billion at March 31, 2001.

Published: April 17, 2001

Use of this article without permission is a violation of federal copyright laws.


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