[CORRECTION: The original version of this article stated Fannie Mae made a 4Q profit, it did not. It made a loss. The article is now corrected.]
Fannie Mae reported 2017 net income of $2.5 billion, compared with net income of $12.3 billion in 2016.
However, Fannie Mae reports net loss of $6.5 billion and comprehensive loss of $6.7 billion for fourth quarter 2017.
Fannie Mae’s annual pre-tax income for 2017 was $18.4 billion, compared with $18.3 billion in 2016.
Fannie Mae reported a fourth quarter 2017 net loss of $6.5 billion, compared with net income of $3 billion in the third quarter.
The company also added it expects to request an expected billion-dollar provision from the Treasury to eliminate its net worth deficit.
From the earnings report:
The primary driver of changes in the company’s net income for full year 2017 and the fourth quarter of 2017 was a $9.9 billion provision for federal income taxes in the fourth quarter resulting from the remeasurement of the company’s deferred tax assets due to the Tax Cuts and Jobs Act (Tax Act). As a result, Fannie Mae reported a net worth deficit of $3.7 billion as of December 31, 2017. To eliminate the company’s net worth deficit, the company expects the Director of the Federal Housing Finance Agency (FHFA) will submit a request to Treasury on the company’s behalf for $3.7 billion.
“Our 2017 results demonstrate that the fundamentals of our business are strong. While the fourth quarter was affected by a one-time accounting charge, we expect to benefit from a lower tax rate going forward,” said CEO Timothy Mayopoulos in the report.