Today, we released our fiscal year 2021 financial results and filed our Form 10-K for the year ended December 31, 2021 with the SEC. Below are some highlights from our filing.
Multifamily Business Highlights
- Working with our DUS® Partners, Fannie Mae’s new multifamily business volume was $69.5 billion in 2021, of which more than 50% was mission-driven business. This met the requirements established by the Federal Housing Finance Agency (FHFA) for 2021 volumes, including a multifamily volume cap of $70 billion. The cap for 2022 is $78 billion, with a minimum of 50% mission-driven volume, and 25% of loan purchases affordable to residents earning 60% or less of area median income, up from 20% in 2021.
- Multifamily provided liquidity for approximately 694,000 units of multifamily housing in 2021, with nearly 95% of those units affordable to families earning at or below 120% of the area median income, providing support for both affordable and workforce housing.
- Multifamily's net income was $3.0 billion in fiscal year 2021 and $988 million in the fourth quarter of 2021, compared to $1.9 billion in fiscal year 2020 and $626 million in the fourth quarter of 2020.
- Multifamily revenue for 2021 was driven by $4.2 billion in net interest income. Nearly 75% of our multifamily net interest income in 2021 was derived from guaranty fee income, which continued to be the primary driver of revenues for the business. The multifamily guaranty book of business increased by 7% in 2021 to $413 billion.
- Multifamily credit-related income of $511 million in 2021, a switch from credit-related expense of $623 million in 2020, was primarily driven by a lower loan loss allowance due to improved economic data and lower expected losses resulting from the COVID-19 pandemic, as well as very strong market fundamentals including higher estimates of actual and projected property values.
- As of December 31, 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. Less than 0.1% of the multifamily book, or $363 million in unpaid principal balance, was still in active forbearance, with 66% resulting from COVID-19-related financial hardship.
- Our multifamily serious delinquency rate decreased to 0.42% as of December 31, 2021, compared with 0.98% as of December 31, 2020, primarily driven by the ongoing economic recovery resulting in loans that received COVID-19 forbearance completing their repayment plans or otherwise reinstating, partially offset by the impact of natural disaster-related financial hardship. The multifamily serious delinquency rate, excluding loans that received a forbearance, was 0.04% as of December 31, 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 the fourth quarter of 2021, we entered into two new credit risk transfer transactions, transferring mortgage credit risk through our MCIRT program. These transactions were the first new multifamily credit risk transfer transactions we entered into since the first quarter of 2020.
- Fannie Mae reported annual net income of $22.2 billion for fiscal year 2021 compared with net income of $11.8 billion for 2020. Net income increased $10.4 billion compared with 2020, primarily driven by a shift from credit-related expense to credit-related income, higher net interest income and a shift from fair value losses to fair value gains.
- Credit-related income was $5.1 billion in 2021, compared with credit-related expense of $855 million in 2020. Credit-related income in 2021 was driven primarily by strong actual and forecasted home price growth, a reduction in the company’s estimate of losses it expects to incur as a result of the COVID-19 pandemic, and an increase in the volume of loan redesignations, partially offset by increases in interest rates.
- Net interest income increased $4.7 billion in 2021 compared with 2020, driven primarily by higher base guaranty fee income and higher amortization income. Increases in the size of the guaranty book of business and the company's average charged guaranty fee led to the increase in guaranty fee income, while high single-family refinance volumes drove elevated amortization income.
- Fannie Mae’s net worth increased to $47.4 billion as of December 31, 2021.
- Fannie Mae provided $1.4 trillion in liquidity to the mortgage market in 2021, helping borrowers and renters across the country to own or rent a home through the financing of approximately 5.5 million home purchases, refinancings, and rental units.
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