Mortgage retailers like Fannie Mae and Freddie Mac are expected to end 2012 with a higher profit margin than the country’s big banks.
Bank of America’s projected fourth quarter earnings in 2012 were around 19 cents a share. The lending mogul is now projected a rough 2 cents a share. The plunge in earnings is being attributed to its large $11.6 billion dollar settlement with Fannie Mae earlier last year.
Other lending frontrunners, J.P. Morgan Chase & Co. and Citigroup Inc., experienced a dip in fourth quarter earnings as well due to similar mortgage-related settlements.
Reuters released data showing that mortgage retailers experienced and 11% gain while the “broader sector” will see only an 8.5% gain.