4Q & Full-Year 2025 Multifamily Earnings Highlights
Today, we released our 4Q and Full-Year 2025 financial results and filed our Form 10-K for the year ended December 31, 2025 with the SEC. Below are some highlights from our filing.
Key Multifamily Metrics
- The Multifamily guaranty book of business grew to $534.7 billion as of December 31, 2025, a 7% increase from December 31, 2024.
- New multifamily business volume rose to $25.8 billion in the fourth quarter of 2025. Full-year 2025 volume reached $73.7 billion.
- Multifamily serious delinquency rate increased to 0.74% as of December 31, 2025 from 0.68% as of September 30, 2025 and 0.57% as of December 31, 2024.
- Multifamily financed approximately 531,000 units of multifamily rental housing in 2025, more than 80% of which were affordable to households earning at or below 100% of area median income, providing support for both workforce and affordable housing.
- Multifamily guaranty book credit characteristics remained stable, with weighted-average original loan-to-value ratio of 63% and a weighted-average debt service coverage ratio of 1.9 as of December 31, 2025.
- In 2025, we entered into two new multifamily credit risk transfer transactions through our Multifamily CIRT™ (MCIRT™) and Multifamily Connecticut Avenue Securities™ (MCAS™) programs. As of December 31, 2025, a portion of the credit risk on approximately 32% of our multifamily guaranty book of business was covered by a back-end credit risk transfer transaction.
Multifamily Business Financial Highlights
| (Dollars in millions) | 4Q25 | 3Q25 | Variance | % Change | 2025 | 2024 | Variance | % Change |
|---|---|---|---|---|---|---|---|---|
| Net revenues | $1,245 | $1,211 | $34 | 3% | $4,790 | $4694 | $96 | 2% |
| (Provision) benefit for credit losses | (5) | (69) | 64 | 93% | (283) | (752) | 469 | 62% |
| Other gains (losses), net | 35 | 28 | 7 | 25% | 117 | 79 | 38 | 48% |
| Non-interest expense | (239) | (210) | (29) | (14%) | (1,015) | (872) | (143) | (16%) |
| Income before federal income taxes | 1,036 | 960 | 76 | 8% | 3,609 | 3,149 | 460 | 15% |
| Provision for federal income taxes | (186) | (186) | 0 | 0%* | (661) | (601) | (60) | (10%) |
| Net Income | $850 | $774 | $76 | 10% | $2,948 | $2,548 | $400 | 16% |
| *Represents less than 0.5% |
- Multifamily net income increased to $2.9 billion in 2025 from $2.5 billion in 2024, primarily driven by a $469 billion reduction in the provision for credit losses, partially offset by a $143 billion increase in non-interest expense. Our multifamily provision for credit losses in 2025 was primarily driven by an increase in delinquencies, partially offset by a slightly improved long-term forecast of multifamily property net operating income and property values.
- Multifamily revenues increased slightly to $4.8 billion in 2025, with guaranty fee income continuing to provide a stable driver of earnings for the business.
Company Highlights
- Fannie Mae recognized net income of $14.4 billion for the full-year of 2025 and $3.5 billion for fourth quarter 2025.
- Fannie Mae’s net worth increased to $109.0 billion as of December 31, 2025 from $94.7 billion as of December 31, 2024.
- Fannie Mae provided $409.3 billion in liquidity to the mortgage market in 2025, which enabled the financing of approximately 1.5 million home purchases, refinancings, and rental units.