Fannie Mae Multifamily Reports Q1 2021 Financial Results

Today, we released our first quarter 2021 financial results and filed our Form 10-Q for the quarter ended March 31, 2021 with the SEC. Below are some highlights from today’s filings.

View Q1 2021 Financial Results

Multifamily Business Highlights

• Multifamily's net income was $599 million for the first quarter of 2021, compared with $626 million in the fourth quarter of 2020.
• Multifamily revenue was driven by $848 million in net interest income. Over 85% of our multifamily net interest income in the first quarter of 2021 was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business. The multifamily guaranty book of business increased by $54 billion from March 31, 2020 to $399 billion as of March 31, 2021.
• Multifamily credit-related income of $91 million for the first quarter of 2021 was primarily driven by a benefit from actual and projected economic data and lower expected losses resulting from the COVID-19 pandemic. 
• Working with our Multifamily Partners, Fannie Mae new multifamily business volume was $21.5 billion for the first quarter of 2021. FHFA established a 2021 multifamily volume cap of $70 billion, of which 50% must be mission-driven, focused on certain affordable and underserved market segments, and 20% must be affordable to residents earning 60% of area median income or below.
• Multifamily provided liquidity for 217,000 units of rental housing in the first quarter of 2021, 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.
• Since the COVID-19 pandemic was declared a national emergency in March 2020, we have offered forbearance to affected multifamily borrowers. As of March 31, 2021, based on unpaid principal balance, 1.3% of Fannie Mae’s multifamily guaranty book of business had received a forbearance plan (excluding loans that liquidated prior to period end), primarily as a result of the COVID-19 pandemic. More than 70% of those loans, measured by unpaid principal balance, were in a repayment plan or reinstated and only 0.2% of the book, or $917 million in unpaid principal balance, was still in active forbearance as of March 31, 2021.
• Our multifamily serious delinquency rate decreased to 0.66% as of March 31, 2021, compared with 0.98% as of December 31, 2020, primarily driven by loans that received forbearance that are now in a forbearance repayment plan or have been modified or otherwise reinstated. This rate increased from 0.05% as of March 31, 2020, due to the economic dislocation caused by the COVID-19 pandemic, which increased borrower participation in forbearance plans since the start of the pandemic. Our multifamily serious delinquency rate consists of multifamily loans that were 60 days or more past due based on unpaid principal balance, expressed as a percentage of our multifamily guaranty book of business.

Company Highlights

• Fannie Mae reported net income of $5.0 billion for the first quarter of 2021 compared with $4.6 billion net income for the fourth quarter of 2020. The increase in net income compared with the prior quarter was driven primarily by a shift to fair value gains in the first quarter of 2021 from fair value losses in the fourth quarter of 2020, partially offset by lower credit-related income and lower net interest income.
• Fannie Mae’s net worth increased to $30.2 billion as of March 31, 2021. Our senior preferred stock purchase agreement with Treasury was amended in January 2021, allowing Fannie Mae to continue to retain earnings while the company builds capital.
• Fannie Mae continues to provide economic relief to borrowers impacted by COVID-19 through its forbearance programs. As of March 31, 2021, 2.5% of Fannie Mae’s single-family guaranty book of business based on loan count and 0.2% of the company’s multifamily guaranty book of business based on unpaid principal balance were in forbearance, the vast majority of which were related to COVID-19.
• Fannie Mae provided $422 billion in liquidity to the mortgage market in the first quarter of 2021, helping borrowers and renters across the country to own or rent a home through the financing of approximately 1.7 million home purchases, refinancings, and rental units.