Fannie Mae Profit Rises 20 Percent In Second Quarter
The change in Federal National Morgage Association's second-quarter earnings was reported incorrectly in Business yesterday. Fannie Mae earned $120.7 million ($1.52) in the second quarter this year, nearly double the $61.3 million (74 cents) in the second quarter a year ago. The change in the company's administrative expenses also was reported incorrectly. They rose 9 percent in the second quarter. (Published 7/15/88)</br></br>Federal National Mortgage Association said yesterday that its profit increased 20 percent in the second quarter despite rising interest rates.</br></br>The Washington-based federally chartered corporation, which buys mortgages from lending institutions and repackages them for investors, said it earned $120.7 million ($1.52 a share) in the quarter, compared to $100.9 million ($1.27) a year ago.</br></br>"Fannie Mae's excellent second-quarter earnings, achieved despite generally rising interest rates, are a continuing demonstration of the company's reduced sensitivity to interest rates," David O. Maxwell, Fannie Mae's chairman, said in a statement. The company said it was able to overcome the rising rates in part by reducing administrative costs.</br></br>In the first six months of the year, Fannie Mae earned $221.6 million ($2.79), up 84 percent from $120.2 million ($1.49) a year ago.