Although Freddie Mac and Fannie Mae continue to post strong earnings—excluding dividends to the U.S. Treasury—the Government National Mortgage Association saw its profits fall almost 50% in fiscal year 2012, according to figures released Thursday.
But the reason for the decline in earnings was not unexpected. In a press statement GNMA president Ted Tozer blamed the lower performance on “an increase in provisions for losses.”
The government guarantor earned $610 million for the year ending Sept. 30, compared to $1.18 billion in FY 2011.
The agency’s guarantee covers roughly $1.3 trillion of home mortgages, or 14% of the entire mortgage market, according to figures compiled by National Mortgage News and the Quarterly Data Report.
Recently, Freddie Mac posted third-quarter earnings of $5.6 billion, Fannie Mae $2.6 billion.