Q2 2018 Earnings

Fannie Mae filed its second quarter financial results this morning and I'm pleased to report that it's another solid quarter for the company and Multifamily. I know we couldn't continue to achieve these results without you and I thank you for your business and continued partnership in serving the rental housing market.

Some highlights from our filing are below.

Multifamily Business Highlights

  • Multifamily's pre-tax income was $596 million and its net income was $504 million in the second quarter of 2018, driven by $654 million in net interest income, which primarily consists of guaranty fee revenue.
  • Together with our Lender Partners, Multifamily provided financing for 188,000 units of multifamily housing in the second quarter of 2018. 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.
  • Together with our Lender Partners, Multifamily provided more than $10 billion in Green Financing in the first half of 2018. Additionally, in the first half of 2018, we issued $2.1 billion in Green GeMS™ -- re-securitizations backed by Fannie Mae Green MBS.
  • The multifamily serious delinquency rate was 0.10% as of June 30, 2018, compared with 0.11% as of December 31, 2017.

Company Highlights

  • Fannie Mae reported net income of $4.5 billion and comprehensive income of $4.5 billion for the second 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 $125 billion in liquidity to the mortgage market in the second quarter of 2018, which enabled the financing of 665,000 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 June 30, 2018, $1.0 trillion in single-family mortgages, or approximately 35% of the 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 second quarter of 2018, nearly 100% of the company's new multifamily business volume had lender risk-sharing.

More information is available here:

Best,

Jeff