Multifamily Earnings Highlights

We have released our fiscal year 2022 financial results and filed our Form 10-K for the year ended December 31, 2022 with the SEC. Below are some highlights from our filing.

Key Multifamily Metrics

Other Multifamily Highlights

• Multifamily provided liquidity for approximately 598,000 units of rental housing in 2022, a significant majority of which were affordable to households earning at or below 120% of the median income in their area, providing support for both workforce housing and affordable housing.

• The multifamily guaranty book of business grew by approximately 7% in 2022 to $440 billion driven by $69 billion of new acquisition volume, which we believe met the mission requirements and multifamily housing goals established by FHFA. Despite challenging market conditions, our multifamily acquisition volume was commensurate with 2021.

• Multifamily revenue for 2022 was driven by $4.7 billion in net interest income. Over 70% of our multifamily net interest income in 2022 was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business.

• Multifamily had net income of $2.2 billion and net revenues of $4.8 billion for 2022. In the fourth quarter, Multifamily recognized a $1.1 billion provision for credit losses, approximately $900 million of which related to the company’s seniors housing portfolio. This provision drove a $52 million net loss for the quarter.

• Although nearly all seniors housing loans in the company’s multifamily guaranty book of business were current on their payments as of December 31, 2022, the company’s seniors housing portfolio has been disproportionately impacted by recent market conditions. A sharp rise in short-term interest rates during the latter half of 2022 put additional stress on this portfolio that was already experiencing elevated vacancy rates compared to pre-pandemic levels and higher operating costs exacerbated by higher inflation in recent periods. These factors increased the expected credit losses on this population.

• In 2022, we entered into one new credit risk transfer transaction, transferring mortgage credit risk through our Multifamily CIRT^TM (MCIRT^TM) program. As of December 31, 2022, approximately 26% of our multifamily guaranty book was covered by a back-end credit risk transfer transaction.

Company Highlights

• Fannie Mae reported net income of $12.9 billion for 2022 and $1.4 billion for fourth quarter 2022. 

• Fannie Mae’s net worth increased to $60.3 billion as of December 31, 2022.

• Net income decreased $9.3 billion in 2022 compared with 2021, primarily driven by a $11.4 billion shift to provision for credit losses and a $1.6 billion shift to investment losses, partially offset by a $1.1 billion increase in fair value gains.

• Fannie Mae provided $684 billion in liquidity to the mortgage market in 2022, helping borrowers and renters across the country to own or rent a home through the financing of approximately 2.6 million home purchases, refinancings, and rental units.