Multifamily Earnings Highlights
Today, we released our Q4 and Full-Year 2024 financial results and filed our Form 10-K for the year ended December 31, 2024 with the SEC. Below are some highlights from our filing.
| Key Multifamily Metrics | ||
| 2024 | 2023 | |
| Net Interest Income ($ millions) | $4,618 | $4,544 |
| Net Income ($ millions) | $2,548 | $2,553 |
| New Business Volume ($ billions) | $55.1 | $52.9 |
Guaranty Book of Business ($ billions) (as of year end) | $499.7 | $470.4 |
Serious Delinquency Rate (as of year end) | 0.57% | 0.46% |
Other Multifamily Highlights
- Multifamily financed approximately 420,000 units of multifamily rental housing in 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.
- New multifamily business volume was $55.1 billion in 2024, compared with $52.9 billion in 2023. Multifamily business volumes increased in 2024 compared with 2023, reflecting increased market activity in the fourth quarter of 2024.
- In 2024, Multifamily provided $3.2 billion (6% of total multifamily acquisitions) of financing for workforce housing properties meeting specified criteria that preserve long-term affordability for the properties.
- Multifamily revenue of $4.7 billion in 2024 was driven by $4.6 billion in net interest income. Over 75% of our multifamily net interest income in 2024 was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business.
- Multifamily’s net income was $2.5 billion in 2024 compared to $2.6 billion in 2023, primarily driven by a larger provision for credit losses, partially offset by an increase in net interest income. Our multifamily provision for credit losses was largely driven by an incremental decline in property values, rising delinquencies, and the ongoing investigation of lending transactions with suspected fraud. The increase in net interest income was driven by higher guaranty fee income as a result of a 6% book growth, partially offset by lower average charged guaranty fees and the impact of lower yield maintenance income from fewer prepayments.
- The overall credit profile of our multifamily guaranty book of business remained strong, with a weighted-average original loan-to-value ratio of 63% and a weighted-average debt service coverage ratio of 2.0 times as of December 31, 2024.
- The multifamily serious delinquency rate increased to 0.57% as of December 31, 2024 from 0.46% as of December 31, 2023, primarily due to a portfolio of approximately $600 million of adjustable-rate conventional loans that became seriously delinquent in the third quarter of 2024.
- In 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 December 31, 2024, a portion of the credit risk on approximately 31% of our multifamily guaranty book of business was covered by a back-end credit risk transfer transaction.
Company Highlights
- Fannie Mae recognized net income of $17.0 billion for the full year of 2024 and $4.1 billion for fourth quarter 2024.
- Fannie Mae’s net worth increased to $94.7 billion as of December 31, 2024 from $77.7 billion as of December 31, 2023.
- Fannie Mae provided $381 billion in liquidity to the mortgage market in 2024, which enabled the financing of approximately 1.4 million home purchases, refinancings, and rental units.