Sweeping changes to U.S. tax law led to a $6.53 billion loss at Fannie Mae
last quarter, putting the government-controlled mortgage company in the
position of seeking cash assistance from taxpayers for the first time
since it emerged from the housing crisis six years ago.
Fannie Mae said Wednesday its net worth sank to a negative $3.7 billion
after it had to "remeasure" its deferred tax assets to the tune of $9.9
billion as required by the Tax Cuts and Jobs Act, signed into law by
President Donald Trump just before the end of the year.
Due to the tax charge, Fannie Mae reported 2017 net income of $2.46
billion for 2017, down from $12.31 billion in 2016. But its pretax
income was $18.45 billion, slightly better than the $18.33 billion in
2016.
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