Fannie Mae Files First Quarter 2018 Earnings

Fannie Mae filed its first quarter financial results this morning and I'm pleased to report that it's another solid quarter for the company and Multifamily. Some filing highlights are below.

Together, we continue to be a leading source of financing and securitization for quality rental housing, while balancing risk and return—in every market, for every income level, every day. It is our partnership in the Loan We All Own™ that makes all the difference in our results. I thank you for your business and continued commitment in serving the rental housing market.

Multifamily Business Highlights

  • Multifamily's pre-tax income was $695 million in the first quarter in 2018, driven by $671 million in net interest income, which primarily consists of guaranty fee revenue.
  • Fannie Mae provided more than $11 billion in multifamily rental financing in the first quarter of 2018. Approximately 38% of Fannie Mae's first quarter multifamily new business volume counted toward FHFA's 2018 multifamily volume cap.
  • Multifamily provided financing for approximately 154,000 units of multifamily housing in the first quarter of 2018. More than 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.
  • The multifamily serious delinquency rate increased slightly from 0.11% as of December 31, 2017 to 0.13% as of March 31, 2018.

Company Highlights

  • Fannie Mae reported net income of $4.3 billion and comprehensive income of $3.9 billion for the first quarter of 2018, reflecting the strength of the company's underlying business fundamentals.
  • Through Fannie Mae's single-family and multifamily business segments, the company provided $124 billion in liquidity to the mortgage market in the first quarter of 2018, which enabled the financing of 638,000 home purchases, refinancings, or rental units.
  • Fannie Mae continued to transfer a portion of the credit risk on single-family and multifamily mortgages. As of March 31, 2018, $995 billion in single-family mortgages, or approximately 34% of loans in the company's single-family conventional guaranty book of business, measured by unpaid principal balance, were covered by a credit risk transfer transaction. In addition, in the first quarter of 2018, nearly 100% of the company's new multifamily business volume had lender risk-sharing.

More information is available here: