Multifamily Earnings Highlights

We have released our Q1 2023 financial results and filed our Form 10-Q for the quarter ended March 31, 2023 with the SEC. Below are some highlights from our filing.

Key Multifamily Metrics

Other Multifamily Highlights

• Multifamily financed approximately 91,000 units of rental housing in the first quarter of 2023. Over 95% of the multifamily units we financed in the first quarter of 2023 that were potentially eligible for housing goals credit were affordable to those earning at or below 120% of the median income in their area, providing support for both workforce housing and affordable housing.
• Multifamily revenue for the first quarter of 2023 was driven by $1.1 billion in net interest income. Over 75% of our multifamily net interest income in the first quarter of 2023 was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business.
• Net income increased $692 million in the first quarter of 2023 compared with the fourth quarter of 2022 driven by a $912 million decrease in the provision for credit losses. The$179 million provision for credit losses in the first quarter of 2023 was primarily due to declines in property values and continued uncertainty related to seniors housing loans, including uncertainty related to adjustable-rate loans, partially offset by a benefit from lower actual and projected interest rates. The $1.1 billion provision for credit losses in the fourth quarter of 2022 was primarily driven by an increase in expected credit losses on the company’s seniors housing portfolio, which has been disproportionately impacted by recent market conditions.
• The credit profile of our multifamily guaranty book of business, as a whole, is strong. However, the company’s seniors housing loans, especially those that are adjustable-rate mortgages, remain stressed. Approximately 38% of the $16.5 billion seniors housing loans in the company’s multifamily guaranty book of business as of March 31, 2023 were adjustable-rate mortgages, compared with 11% for the entire multifamily guaranty book.
• As of March 31, 2023, approximately 25% of our multifamily guaranty book was covered by a back-end credit risk transfer transaction. In April 2023, we entered into a new credit risk transfer transaction, transferring mortgage credit risk through our MCIRT™ program.
• The multifamily serious delinquency rate increased to 0.35% as of March 31, 2023, compared with 0.24% as of December 31, 2022, largely driven by a seniors housing portfolio.

Company Highlights

• Fannie Mae reported net income of $3.8 billion for the first quarter of 2023.
• Net income increased $2.3 billion in the first quarter of 2023 compared with the fourth quarter of 2022, driven primarily by a $3.2 billion decrease in provision for credit losses.
• Fannie Mae’s net worth increased to $64.0 billion as of March 31, 2023 from $60.3 billion as of December 31, 2022.
• Fannie Mae provided $78 billion in liquidity to the mortgage market in the first quarter of 2023, helping borrowers and renters across the country to own or rent a home through the financing of approximately 306,000 home purchases, refinancings, and rental units.