Fannie Mae Multifamily Reports Q3 2021 Financial Results

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

View Q3 2021 Financial Results

Multifamily Business Highlights

• Multifamily's net income was $817 million for the third quarter of 2021, compared with $460 million for the third quarter of 2020 and $645 million for the second quarter of 2021.
• Multifamily revenue was driven by $1.1 billion in net interest income. The multifamily guaranty book of business grew by $6.2 billion in the third quarter of 2021 to $408.1 billion.
• Working with our DUS Partners, Fannie Mae new multifamily business volume was $16.4 billion in the third quarter of 2021 and $48.8 billion for the first nine months of 2021. The Federal Housing Finance Agency (FHFA) established a 2021 multifamily volume cap of $70 billion, of which 50% must be mission-driven, focused on specified affordable and underserved market segments, and 20% must be affordable to residents earning 60% of area median income or below. In October 2021, FHFA announced that the multifamily loan purchase cap for 2022 will be $78 billion. As in 2021, a minimum of 50% of loan purchases must be mission-driven, focused on specified affordable and underserved market segments. In addition, 25% of loan purchases must be affordable to residents earning 60% or less of area median income, up from the 20% requirement in 2021.
• Multifamily provided liquidity for 166,000 units of rental housing in the third quarter of 2021, more than 90% of which were affordable to families earning at or below 120% of area median income, providing support for both workforce housing and affordable housing.
• Through September 30, 2021, 1.6% of our multifamily guaranty book of business as of March 31, 2020, based on unpaid principal balance, had been in a COVID-19-related forbearance at some point in time. As of September 30, 2021, nearly 90% of the loans in the company’s multifamily guaranty book of business that had received a forbearance, measured by unpaid principal balance, were in a repayment plan or reinstated. Only 0.1% of the multifamily book, or $362 million in unpaid principal balance, was still in active forbearance.
• Our multifamily serious delinquency rate decreased to 0.42% as of September 30, 2021, compared with 0.53% as of June 30, 2021, primarily driven by the ongoing economic recovery resulting in loans that received forbearance completing their repayment plans or otherwise reinstating. The multifamily serious delinquency rate, excluding loans that received a forbearance, remained at 0.03% as of September 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.
• In October 2021, we entered into a new multifamily credit risk transfer transaction for the first time since the first quarter of 2020, transferring $218 million of mortgage credit risk on $11.8 billion of unpaid principal balance of loans acquired in 2021 through our MCIRT^TM program.

Company Highlights

• Fannie Mae reported net income of $4.8 billion for the third quarter of 2021 compared with $7.2 billion for the second quarter of 2021. The decrease in net income in the third quarter compared with the second quarter was driven primarily by a decrease in credit-related income and lower net interest income. Credit-related income decreased $1.7 billion in the third quarter of 2021 compared with the second quarter of 2021 driven primarily by a decrease in the volume of loan redesignations, less benefit from both actual and forecasted home price growth, and increases in interest rates. Net interest income decreased $1.3 billion in the third quarter of 2021 compared with the second quarter of 2021 driven primarily by a decrease in net amortization income as a result of lower single-family loan prepayment activity.
• Fannie Mae’s net worth increased to $42.2 billion as of September 30, 2021.
• Fannie Mae provided $1.1 trillion in liquidity to the mortgage market in the first nine months of 2021, helping borrowers and renters across the country to own or rent a home through the financing of approximately 4.3 million home purchases, refinancings, or rental units.

More information is available here:

Q3 2021 Form 10-Q
Q3 2021 10-Q News Release
Q3 2021 10-Q Financial Supplement