Jeff Hayward

Fannie Mae filed its third 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.

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. With your help we were able to deliver 70% more units than last quarter, while maintaining approximately 90% affordability to families earning at or below 120% area median income.

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.

Multifamily Business Highlights

  • Multifamily net income for the third quarter of 2016 was $375 million. An additional $78 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 included in the Capital Markets group's results as well.
  • Multifamily net income was primarily driven by $431 million in guaranty fee income in the third quarter of 2016, compared with $400 million for the second quarter of 2016. The Multifamily guaranty book of business was $236.2 billion as of September 30, 2016, compared with $225.2 billion as of June 30, 2016.
  • Multifamily provided financing for approximately 240,000 units of multifamily housing in the third quarter of 2016. Approximately 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 third quarter of 2016 totaled $17.9 billion, resulting in $40.7 billion for the first nine months of 2016. Approximately 66% of Fannie Mae's multifamily new business volume for the first nine months of 2016 counted towards FHFA's 2016 multifamily volume cap.

Company Highlights

  • Fannie Mae reported net income of $3.2 billion and comprehensive income of $3.0 billion for the third quarter of 2016.
  • Fannie Mae expects to pay $3.0 billion in dividends to Treasury in December 2016. With the expected December dividend payment, the company will have paid a total of $154.4 billion in dividends to Treasury.
  • Fannie Mae was the largest provider of liquidity to the mortgage market in the third quarter of 2016, providing approximately $184 billion in mortgage financing that enabled families to buy, refinance, or rent homes.

More information is available here:

Best,

Jeff