Jeff Hayward

Thanks to you, our 2016 story is all about success. Once again, our partnership has yielded both hundreds of thousands of multifamily units for working families and solid financial results for lenders, borrowers, and Fannie Mae. The bullets below provide those details, so let me just say this: Thank you. We're off to a great start in 2017, and I look forward to our continued success providing financing and securitization for affordable and workforce rental housing -- in every market, for every income level, every day.

Multifamily Business Highlights

  • Multifamily finished 2016 with $2.1 billion in net income, resulting in over $6B in income since 2014. Net income in 2016 was driven by an increase in net interest income, primarily consisting of guaranty fee revenue. Our guaranty fee revenue continues to increase as the multifamily guaranty book of business grows and loans with higher guaranty fees become a larger part of our book.
  • Multifamily provided financing for approximately 724,000 units of multifamily housing in 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 2016 totaled $55.3 billion, of which approximately 66% counted towards FHFA's 2016 multifamily volume cap.
  • Credit performance of the book of business was strong in 2016. The serious delinquency rate decreased to 5 bps and the number of multifamily foreclosed properties held for sale remained low at 13 properties as of December 31, 2016.

Company Highlights

  • Fannie Mae reported annual net income of $12.3 billion and annual comprehensive income of $11.7 billion in 2016.
  • Fannie Mae paid a total of $9.6 billion in dividends to Treasury in 2016. The company expects to pay Treasury $5.5 billion in dividends in March 2017. With the expected March 2017 dividend payment, Fannie Mae will have paid a total of $159.9 billion in dividends to Treasury.
  • Fannie Mae was the largest provider of liquidity to the mortgage market in 2016, providing approximately $637 billion in mortgage financing that enabled families to buy, refinance, or rent homes.

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