Fannie Reports 3Q Earnings

Fannie Mae has reported record earnings of $1.124 billion ($1.09 per share) for the third quarter,compared with $991.0 million ($0.94 per share) a year earlier. Taxable-equivalentrevenues totaled $1.98 billion, up 13% from a year earlier. Timothy Howard, Fannie Mae's executive vice presidentand chief financial officer, said the growth in taxable-equivalent revenues was due mainly to a $187.1 millionincrease in net interest income from the third quarter of 1999, which he attributed to a 15.2% increase in thecompany's average net mortgage balance. Mr. Howard pointed to a total of $45.7 billion in retained commitmentsfor Fannie Mae's mortgage portfolio in the third quarter, which he said was the highest since the second quarterof 1999. Fannie Mae said its portfolio grew at an annual rate of 15.6% in the third quarter, and its total bookof business (including net mortgage-backed securities outstanding) increased 8.3%. The company's credit-loss rate(credit losses as a percentage of total mortgages and MBS) held steady at 0.6 basis points, with $19.5 millionin credit-related losses. Fannie Mae's website address is http://www.fanniemae.com.