- The Washington Times - Wednesday, October 16, 2002

Fannie Mae, the nation's largest mortgage buyer, yesterday said profits dropped 19 percent for the third quarter ended Sept. 30, largely from losing $1.38 billion in depreciating securities used to protect the company from interest-rate changes.
Income for the Washington company fell to $994.3 million (98 cents per share) from $1.23 billion ($1.19) a year earlier.
Excluding the loss, earnings rose to $1.63 billion ($1.62). The increase reflects the record number of U.S. homeowners who are refinancing.
"There's a buoyant housing market, a very favorable interest rate environment, and they have good" credit loans, said Mark Schultz, financial adviser, who has been adding to the 500,000 shares of Fannie Mae owned by M&T; Asset Management in Buffalo, N.Y. "There are a number of factors blowing in their favor."
The lowest mortgage rates in more than three decades have sent the Mortgage Bankers Association of America's refinancing index to a record, giving Fannie Mae more loans to buy.
The company's mortgage investments rose to $186.8 billion, up 18 percent from $158.8 billion last year.
Among other local companies reporting earnings yesterday:
Capital One Financial Corp., the Falls Church credit-card issuer of Visa and MasterCard, reported a 57 percent jump in profits for the third quarter ended Sept. 30 to $258.8 million ($1.13) from $165.3 million (75 cents) a year ago.
Gannett Co., the McLean media giant, said income rose 52 percent for the third quarter ended Sept. 30 to $265.6 million (99 cents) from $174.8 million (66 cents) a year ago.
Dominion Resources, the Richmond electric power company, posted a 25 percent increase in income for the third quarter ended Sept. 30 to $430 million ($1.54) from $344 million ($1.37) a year earlier.
TesscoTechnologies Inc., a Hunt Valley, Md. technology supplier to the wireless-communications industry, said profits climbed 12 percent for the third quarter ended Sept. 29 to $18.8 million (26 cents) from $16.8 million (20 cents) a year earlier.


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