Fannie Mae Net Income Falls 52%

Fannie Mae’s fourth-quarter earnings fell 52% as the largest mortgage buyer had a $1.88-billion decline in the value of financial contracts used to hedge against interest rate swings. The company’s mortgage portfolio grew 12% to $791 billion last year.

Net income at the company fell to $952.2 million, or 94 cents a share, from $1.97 billion, or $1.92, a year earlier.

Shares of Fannie Mae fell 91 cents to $69.14 on the New York Stock Exchange.