Fannie Mae filed its second quarter 2019 financial results this morning, and it’s been another strong quarter for the company and for Multifamily. We’re continuing to deliver on our mission to provide liquidity to the mortgage market, enabling families to buy, refinance, or rent a home.

A few highlights from our filing are below, including our multifamily results.

Multifamily Business Highlights

  • Multifamily's net income was $561 million in the second quarter of 2019, driven by $731 million in net interest income. Approximately 80% of our multifamily net interest income in the quarter was derived from guaranty fee income, which continued to provide a stable driver of earnings for the business.  The multifamily guaranty book of business reached over $320 billion in the second quarter of 2019.
  • Working with our DUS® Partners, Fannie Mae provided $17.2 billion in multifamily financing in the second quarter of 2019, which supported 183,000 units of multifamily housing.  Over 90% of the multifamily units the company financed were affordable to families earning at or below 120% of the area median income, providing support for both affordable and workforce housing.  In the second quarter of 2019, 50% of multifamily new business volume counted toward FHFA's 2019 multifamily volume cap, which resulted in approximately 56% of our multifamily new business volume of $34.1 billion for the first half of 2019 counting toward the cap.
  • Working with our DUS Partners, Fannie Mae continued to be one of the largest issuers of Green bonds in the world, issuing $6.8 billion in Green bonds in the first half of 2019 and over $58 billion since inception of the program.
  • As of June 30, 2019, the company has completed five Multifamily Credit Insurance Risk Transfer (MCIRT) transactions since the inception of the program, which covered multifamily loans with an unpaid principal balance of approximately $51.3 billion at the time of the transactions.  As of June 30, 2019, 15% of the loans in our multifamily guaranty book of business, measured by unpaid principal balance, were covered by a MCIRT transaction.
  • The multifamily serious delinquency rate remained low at 0.05% as of June 30, 2019.

Company Highlights

  • Fannie Mae reported second quarter 2019 net income of $3.4 billion, reflecting the strength of the company's underlying business fundamentals.
  • The company's net worth of $6.4 billion as of June 30, 2019 reflected its comprehensive income of $3.4 billion for the second quarter of 2019 and $3.0 billion in retained capital reserves.
  • Fannie Mae provided $145.2 billion in liquidity to the mortgage market in the second quarter of 2019, through its purchases of loans and guarantees of loans and securities, which enabled the financing of approximately 697,000 home purchases, refinancings, or rental units.

More information is available here:

Q2 2019 Form 10-Q

Q2 2019 News Release

Q2 2019 Financial Supplement

Best,

Jeff