Fannie Mae’s Great Expectations, JPMorgan’s Good News: Financial Business Review
Fannie Mae (FNMA.OB) now anticipates posting an annual profit for the first time since 2006, while its third quarter net income of $1.8 billion compares to a $5.1 billion year-over-year loss in 2011, as an improving housing market permitted a $9 billion reduction in loan loss reserves to $67 billion. Similar to Freddie Mac (FMCC.OB), an increasing amount of the loan book, currently at 63 percent, is comprised of mortgages that were originated post-bubble, which means they have stellar credit ratings.
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Manulife Financial Corporation’s (NYSE:MFC) third quarter earnings show a loss that follows an approximate charge of $1 billion as the firm reconfigures its macro assumptions. As for operations, Manulife is impacted by low interest rates and moves its target of $4 billion in annual core earnings forward from 2015 to 2016.
JPMorgan Chase & Co. (NYSE:JPM) says on its 10-Q that the Federal Reserve does not oppose its $3 billion share buyback plan set for the first quarter of next year. In addition, the company says that it has made an agreement in principle with the Securities and Exchange Commission in regards to the inquiry into mortgage-based securities issued by Bear Stearns.
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