Fannie Mae, Freddie Mac 2013 One-Time Event – FHFA

The Federal Housing Finance Agency in its 2013 report to Congress points out Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s record net income in 2013 are greater than at any prior time in their respective histories and these record income were driven largely by certain unique and very large benefits to income.

The FHFA doesn’t anticipate such unique benefits to be repeated in future years and hence the 2013 levels of net income won’t be approached anytime in the foreseeable future.

DTA and ALLL benefits

The report...