U.S.
mortgager Federal National Mortgage (OTC:FNMA) on Wednesday reported earnings of $2.2 billion
in the quarter to June on better price realisations on homes and a decline in
foreclosures. Shares of FNMA ended higher by 4.48% to $0.303 on Wednesday, well
off session high of $0.34. The stock ahs moved up over 30% in the past one
week.
This
is the second quarterly gain the company has recorded since it was taken over
by the U.S. government in the wake of the sub-prime mortgage crisis that rocked
the country in 2008.
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The
company's net income to shareholders was at 37 cents share in the quarter
compared to a loss of $5.2 billion or 90 cents a share in the same period of
the previous year.
It
may be recalled that the company had posted a net income of $2.7 billion in the
March quarter, its first after becoming a state-owned entity.
In
the June quarter it paid dividend of $2.9 billion to the Treasury Department
compared to the $2.8 billion it paid in the March quarter. The mortgager has so
far repaid $26 billion of the $116 bailout money it got from the U.S. Treasury
Department.
U.S.
home sales, which have never recovered since the bubble burst in late 2007,
seem to be on the mend. Prices have started to improve and home sales are much
better than they were a year earlier but still far below their peak levels.
Data
analytics firm CoreLogic had said on Tuesday that home prices in the country
had shown an increase of 2.5 percent in June compared to a year ago.
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On
Tuesday, the other mortgager Freddie Mac had reported net income of $1.2
billion in the second quarter compared to a loss of $3.76 billion a year
earlier.
Fannie
Mae and Freddie Mac between them have about half of the U.S. mortgage market.
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