Multifamily Earnings Highlights

We released our Q1 2024 financial results and filed our Form 10-Q for the quarter ended March 31, 2024 with the SEC. Below are some highlights from our filing.

Key Multifamily Metrics

Other Multifamily Highlights

• Multifamily financed approximately 89,000 units of multifamily rental housing in the first 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.
• Through the first quarter of 2024, Multifamily provided over $1.1 billion (11% of total acquisitions) of financing for workforce housing properties meeting specified criteria that preserve long-term affordability for the properties.
• Multifamily revenue of $1.2 billion in the first quarter of 2024 was driven by $1.1 billion in net interest income. Over 75% of our multifamily net interest income in the first 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 $713 million in the first quarter of 2024 compared to $639 million in the fourth quarter of 2023, with the increase primarily as a result of expected recoveries on credit enhancements and lower foreclosed property expense, partially offset by a larger provision for credit losses. Credit losses in the first quarter of 2024 were primarily driven by declining actual and near-term projected property values, as well as increases in actual and projected interest rates compared to the company’s prior forecast.
• Our Multifamily book had a weighted-average original loan-to-value ratio of 63 percent and a weighted-average debt service coverage ratio of 2.0 times.
• The multifamily serious delinquency rate decreased to 0.44% as of  March 31, 2024, compared with 0.46% as of December 31, 2023, primarily driven by the repayment of forbearance agreements that brought some loans current and seriously delinquent loans that liquidated from our multifamily guaranty book of business, including through a loss event.
• In the first quarter of 2024, we entered into one new multifamily credit risk transfer transaction, transferring mortgage credit risk through our Multifamily CIRT™ (MCIRT™) program. As of March 31, 2024, a portion of the credit risk on approximately 31% of our multifamily guaranty book was covered by a back-end credit risk transfer transaction.

Company Highlights

• Fannie Mae reported net income of $4.3 billion for the first quarter of 2024. 
• Net income increased $377 million in the first quarter of 2024 compared with the fourth quarter of 2023, primarily driven by a $579 million shift to fair value gains in the first quarter of 2024 from fair value losses in the fourth quarter of 2023 as well as a $296 million shift to a benefit for credit losses in the first quarter of 2024 from provision for credit losses in the fourth quarter of 2023, partially offset by a decrease in net interest income.
• Fannie Mae’s net worth increased to $82.0 billion as of March 31, 2024 from $77.7 billion as of December 31, 2023.
• Fannie Mae provided $72 billion in liquidity to the mortgage market in the first quarter of 2024, which enabled the financing of approximately 280,000 home purchases, refinancings, and rental units.