Fannie Mae Multifamily Reports Net Income for Q4 2019

Fannie Mae filed fourth quarter financial results this morning and I’m pleased to report another strong quarter for the company and Multifamily. We couldn’t continue to achieve these results without you, and I thank you for your business and continued partnership in serving the rental housing market.

Some highlights from our filing are below.

Multifamily Business Highlights

• Multifamily's net income was $2.3 billion for the twelve months ended December 31, 2019, driven by $2.9 billion in net interest income.  Approximately 80% of our multifamily net interest income in the quarter was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business. The multifamily guaranty book of business reached approximately $339 billion in the fourth quarter of 2019, an increase of over 10% from 2018.
• Working with our DUS^®  Partners, Fannie Mae provided  $18.1 billion in multifamily financing in the fourth quarter of 2019, which contributed to overall 2019 business volume of $70.2 billion. Multifamily provided liquidity for 726,000 units of multifamily housing in 2019, with over 90% of those units affordable to families earning at or below 120% of the area median income, providing support for both affordable and workforce housing.
• Fannie Mae also enhanced its risk transfer capabilities through the company’s first Multifamily Connecticut Avenue Securities (MCAS™) transaction in the fourth quarter of 2019, while remaining committed to lender risk-sharing through its Delegated Underwriting and Servicing (DUS^®) program. These and other multifamily credit enhancements, including DUS, through 2019 have reduced the company’s conservatorship capital requirement for credit risk on multifamily loans acquired in 2018 by more than 70%.
• The multifamily serious delinquency rate remained low at 0.04% as of December 31, 2019.

Company Highlights

• Fannie Mae reported 2019 net income of $14.2 billion and fourth quarter 2019 net income of $4.4 billion reflecting the strength of the company's underlying business fundamentals.
• Fannie Mae’s net worth increased to $14.6 billion as of December 31, 2019, as the company continues to retain quarterly earnings and restore its capital base. Based on the current agreement with the U.S. Department of the Treasury and the Federal Housing Finance Agency (FHFA), the company may retain quarterly earnings until its net worth reaches $25 billion.
• Fannie Mae provided more than $650 billion in liquidity to the mortgage market in 2019, helping families across the country to own or rent a home through the financing of more than 3 million home purchases, refinancing, and rental units.

More information is available here:

Q4 and Full Year 2019 Form 10-K
Q4 and Full Year 2019 News Release
Q4 and Full Year 2019 Financial Supplement

Best,
Jeff