Fannie Mae Multifamily Reports Q2 2021 Financial Results

Today, we released our second quarter 2021 financial results and filed our Form 10-Q for the period ended June 30, 2021 with the SEC. Below are some highlights from our filing.

View Q2 2021 Financial Results

Multifamily Business Highlights

• Multifamily's net income was $645 million for the second quarter of 2021, compared with $445 million in the second quarter of 2020 and $599 million in the first quarter of 2021.
• Multifamily revenue was driven by $963 million in net interest income. Over 85% of our multifamily net interest income in the second 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 grew by $2.8 billion in the second quarter of 2021 to $401.9 billion.
• Working with our DUS Partners, Fannie Mae new multifamily business volume was $10.9 billion in the second quarter of 2021 and $32.4 billion for the first half 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% or less of area median income.
• Multifamily provided liquidity for 128,000 units of multifamily housing in the second quarter of 2021, with over 90% of those units affordable to families earning at or below 120% of area median income, providing support for both affordable and workforce housing.
• We estimate that 1.6% of our multifamily book of business as of March 31, 2020, based on unpaid principal balance, has been in a COVID-19-related forbearance at some point in time through June 30, 2021. 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 $1.0 billion in unpaid principal balance, was still in active forbearance as of June 30, 2021.
• Our multifamily serious delinquency rate decreased to 0.53% as of June 30, 2021, compared with 0.66% as of March 31, 2021, driven primarily by the on-going economic recovery resulting in loans that received forbearance finishing repayment plans or otherwise reinstating.  The multifamily serious delinquency rate excluding loans that have received a forbearance remained at 0.03% as of June 30, 2021. 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 $7.2 billion for the second quarter of 2021 compared with $5.0 billion net income for the first quarter of 2021, driven primarily by an increase in credit-related income and higher net interest income, partially offset by a shift from fair value gains in the first quarter of 2021 to fair value losses in the second of 2021.
• Fannie Mae’s net worth increased to $37.3 billion as of June 30, 2021. 
• Fannie Mae provided $806 billion in liquidity to the mortgage market in the first half of 2021, helping borrowers and renters across the country to own or rent a home through the financing of approximately 3.1 million home purchases, refinancings, and rental units.

More information is available here:

2021 Form 10-Q
2021 10-Q News Release
2021 10-Q Financial Supplement