Multifamily Earnings Highlights

Today, we released our Q3 2024 financial results and filed our Form 10-Q for the quarter ended September 30, 2024 with the SEC. Below are some highlights from our filing.

Other Multifamily Highlights

• Multifamily financed approximately 103,000 units of multifamily rental housing in the third quarter of 2024, a significant majority of which were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing.
• In the first nine months of 2024, Multifamily provided $2.7 billion (8% of total multifamily acquisitions) of financing for workforce housing properties meeting specified criteria that preserve long-term affordability for the properties, which are exempt from our 2024 volume cap.
• Multifamily revenue in the third quarter of 2024 was driven by $1.1 billion in net interest income. Over 75% of our multifamily net interest income in the third quarter of 2024 was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business.
• Multifamily’s net income was $530 million in the third quarter of 2024 compared to $629 million in the second quarter of 2024. The $99 million decline in multifamily net income compared to the second quarter of 2024 was primarily driven by a larger provision for credit losses in the third quarter, partially offset by a switch from fair value losses to fair value gains. Our multifamily provision for credit losses in the third quarter of 2024 was largely driven by adjustable-rate conventional loans that were written down during the period. In addition, compared to our previous forecast, we expect further slight decreases in projected multifamily property values and that it will take longer for those property values to improve.
• Our multifamily guaranty book of business had a weighted-average original loan-to-value ratio of 63% and a weighted-average debt service coverage ratio of 2.0 times as of September 30, 2024.
• The multifamily serious delinquency rate increased to 0.56% as of September 30, 2024 from 0.44% as of June 30, 2024, due to a portfolio of approximately $600 million of adjustable-rate conventional loans that became seriously delinquent in the third quarter of 2024. Multifamily seriously delinquent loans are loans that are 60 days or more past due.
• During the first nine months of 2024, we entered into three new multifamily credit risk transfer transactions, transferring mortgage credit risk through our Multifamily CIRT™ (MCIRT™) and Multifamily Connecticut Avenue Securities™ (MCAS™) programs. As of September 30, 2024, a portion of the credit risk on approximately 33% of our multifamily guaranty book of business was covered by a back-end credit risk transfer transaction.

Company Highlights

• Fannie Mae reported net income of $4.0 billion for the third quarter of 2024.
• Net income decreased $440 million in the third quarter of 2024 compared with the second quarter of 2024, primarily driven by a decrease in fair value gains and a decrease in benefit for credit losses.
• Fannie Mae’s net worth increased to $90.5 billion as of September 30, 2024 from $86.5 billion as of June 30, 2024.
• Fannie Mae provided $106 billion in liquidity to the mortgage market in the third quarter of 2024, which enabled the financing of approximately 383,000 home purchases, refinancings, and rental units.