Fannie Mae Multifamily Reports Q1 2022 Financial Results

Today, we released our first quarter 2022 financial results and filed our Form 10-Q for the quarter ended March 31, 2022 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 $16.0 billion for the first quarter of 2022, compared with $21.5 billion for the first quarter of 2021. The Federal Housing Finance Agency (FHFA) established a 2022 multifamily volume cap of $78 billion, of which 50% must be mission-driven, focused on certain affordable and underserved market segments, and 25% affordable to residents earning 60% or less of area median income.
• Multifamily provided liquidity for approximately 136,000 units of multifamily housing in the first quarter of 2022; almost 95% of the units potentially eligible for housing goals credit were affordable to families earning at or below 120% of area median income, providing support for both workforce and affordable housing.
• Multifamily's net income was $699 million in the first quarter of 2022, compared to $599 million in the first quarter of 2021. 
• Multifamily revenue was driven by $1.1 billion in net interest income primarily due to higher guaranty fee income. The multifamily guaranty book of business grew by nearly 2% in the first quarter of 2022 to $419.8 billion and average charged guaranty fee on the multifamily book was 79 bps as of March 31, 2022.
• Multifamily credit-related income of $35 million in the first quarter of 2022 was the result of a reduction in our credit loss reserves primarily due to strong multifamily market fundamentals. 
• As of March 31, 2022, more than 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 $246 million in unpaid principal balance, was still in active forbearance, with the majority resulting from COVID-19-related financial hardship.
• Our multifamily serious delinquency rate decreased to 0.38% as of March 31, 2022, compared with 0.42% as of December 31, 2021, as recovery from COVID-19 continued. The multifamily serious delinquency rate, excluding loans that received a forbearance, decreased slightly to 0.03% as of March 31, 2022 from 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 regardless of whether those loans were in an active forbearance or repayment plan, expressed as a percentage of our multifamily guaranty book of business.

Company Highlights

• Fannie Mae reported net income of $4.4 billion for the first quarter of 2022 compared with net income of $5.2 billion for the fourth quarter of 2021. The decrease in net income in the first quarter of 2022 compared with the fourth quarter of 2021 was primarily driven by a shift from credit-related income to credit-related expense and a shift from investment gains to investment losses, partially offset by a shift from fair value losses to fair value gains. 
• Credit-related expense was $201 million in the first quarter of 2022, compared with credit-related income of $912 million in the fourth quarter of 2021. Credit-related expense in the first quarter of 2022 was driven primarily by increases in actual and projected interest rates related to a population of previously modified loans, partially offset by certain loans previously accounted for as troubled debt restructurings (TDR) receiving loss mitigation arrangements during the quarter, which under newly adopted accounting guidance released prior economic concessions relating to these loans from the company’s allowance. 
• Fannie Mae’s net worth increased to $51.8 billion as of March 31, 2022.  
• Fannie Mae provided $255 billion in liquidity to the mortgage market in the first quarter of 2022, helping borrowers and renters across the country to own or rent a home through the financing of approximately 935,000 home purchases, refinancings, and rental units. 

More information is available here:

Q1 2022 Form 10-Q
Q1 2022 Press Release
Q1 2022 Financial Supplement