Multifamily Earnings Highlights

We released our Q2 2024 financial results and filed our Form 10-Q for the quarter ended June 30, 2024 with the SEC. Below are some highlights from our filing.

Other Multifamily Highlights

• Multifamily financed approximately 72,000 units of multifamily rental housing in the second 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 half of 2024, Multifamily provided $1.9 billion (10% 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 second quarter of 2024 was driven by $1.2 billion in net interest income. Over 75% of our multifamily net interest income in the second 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 $629 million in the second quarter of 2024 compared to $713 million in the first quarter of 2024. The $84 million decline in multifamily net income compared to the first quarter of 2024 was primarily driven by a build in the multifamily provision for credit losses, partially offset by an increase in net interest income. The provision in the second quarter of 2024 was primarily driven by continued declines in estimated actual and near-term projected multifamily property values and the impact of new 30-day loan delinquencies in our multifamily guaranty book of business.
• Our multifamily guaranty book 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 June 30, 2024.
• The multifamily serious delinquency rate was flat at 0.44% as of June 30, 2024 and March 31, 2024.
• During the first half of 2024, we entered into one new multifamily credit risk transfer transaction, transferring mortgage credit risk through our Multifamily CIRT™ (MCIRT™) program. As of June 30, 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 $4.5 billion for the second quarter of 2024. 
• Net income increased $164 million in the second quarter of 2024 compared with the first quarter of 2024, primarily driven by increases in net interest income and benefit for credit losses.
• Fannie Mae’s net worth increased to $86.5 billion as of June 30, 2024 from $82.0 billion as of March 31, 2024.
• Fannie Mae provided $95 billion in liquidity to the mortgage market in the second quarter of 2024, which enabled the financing of approximately 330,000 home purchases, refinancings, and rental units.