Multifamily Q2 2016 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. Our filing highlights are below.

I'm particularly proud of reaching a significant milestone during this period. Our Multifamily Affordable Housing (MAH) book of business surpassed $30 billion! This speaks to our partnership and commitment to meeting the challenges of the Affordable rental market. Together, we will continue to innovate and enhance processes to do more Affordable business. Thank you for your business and continued partnership in serving the rental housing market.

Multifamily Business Highlights

  • Multifamily net income for the second quarter of 2016 was $339 million. An additional $84 million in net interest income and yield maintenance income was earned on Fannie Mae multifamily mortgage loans and MBS recognized in the Capital Markets group's results. Additional multifamily market making activity is reflected in the Capital Markets group's results.
  • Multifamily net income was primarily driven by $400 million in guaranty fee income in the second quarter of 2016, compared with $385 million for the first quarter of 2016. The Multifamily guaranty book of business was $225.2 billion as of June 30, 2016, compared with $220.7 billion as of March 31, 2016.
  • Multifamily provided financing for approximately 141,000 units of multifamily housing in the second quarter of 2016. Over 90% of the multifamily units we financed were affordable to families earning at or below 120% of the median income in their area, providing support for both workforce housing and affordable housing.
  • Multifamily new business volume for the second quarter of 2016 totaled $10.3 billion, resulting in $22.8 billion for the first half of 2016. Approximately 67% of Fannie Mae's multifamily new business volume for the first half of 2016 counted towards FHFA's 2016 multifamily volume cap.

Company Highlights

  • Fannie Mae reported net income of $2.9 billion and comprehensive income of $2.9 billion for the second quarter of 2016.
  • Fannie Mae expects to pay $2.9 billion in dividends to Treasury in September 2016. With the expected September dividend payment, the company will have paid a total of $151.4 billion in dividends to Treasury.
  • Fannie Mae was the largest provider of liquidity to the mortgage market in the second quarter of 2016, providing approximately $145 billion in mortgage financing that enabled families to buy, refinance, or rent homes.

More information is available here:

Best,

Jeff