Fannie Mae filed its third quarter financial results this morning and I'm pleased to report that it's another solid quarter for the company and Multifamily. These results are a true testament to our strong partnerships with our lenders and our continued pursuit of excellence in serving them.
Some highlights from our filing are below.
Multifamily Business Highlights
- Multifamily finished the third quarter of 2017 with $491 million in net income, resulting in YTD net income of $1.5 billion. This was mainly driven by net interest income of $647 million for the quarter and $1.9 billion through Q3, which primarily consists of guaranty fee revenue. Our guaranty fee revenue continued to increase as the multifamily guaranty book of business grew, and loans with higher guaranty fees became a larger part of our book, while loans with lower guaranty fees continued to liquidate.
- Multifamily provided financing for approximately 189,000 units of multifamily housing in the third quarter of 2017. Approximately 90% of the multifamily units we financed were affordable to families earning at or below 120% of the median income in their area, providing support for both workforce housing and affordable housing.
- Multifamily new business and other rental volume in 2017 through Q3 totaled $46.8 billion, of which approximately 47% counted towards FHFA's 2017 multifamily volume cap.
- Credit performance of the book of business remained strong in the quarter, with the serious delinquency rate decreasing to 3 bps. Multifamily recognized credit expense of $28 million for the quarter primarily driven by an increase in our allowance for loan losses, which included approximately $50 million in estimated losses from the hurricanes.
- Fannie Mae reported net income and comprehensive income of $3.0 billion for the quarter. As a result, the company will pay Treasury a $3.0 billion dividend in December 2017, if the Federal Housing Finance Agency (FHFA) declares a dividend in this amount.
- Fannie Mae was the largest provider of liquidity to the mortgage market in the third quarter of 2017, providing approximately $150 billion in mortgage financing that enabled families to buy, refinance, or rent homes.
More information is available here: