Economic stability and strategic gains lead to a profitable first quarter
Fannie Mae today reported a net income of $4.3 billion in its first-quarter financial report, marking the company's 25th consecutive quarter of positive earnings.
The government-sponsored enterprise’s (GSE) net income rose to $4.3 billion, and its net worth reached $82 billion as of March 31. Fannie said the gain was primarily driven by a shift to fair value gains and a shift to a benefit for credit losses, partially offset by a decrease in net interest income.
During the first quarter, Fannie Mae acquired approximately 155,000 single-family purchase loans, of which more than 45% were for first-time homebuyers, and approximately 36,000 single-family refinance loans.
Additionally, the GSE financed approximately 89,000 units of multifamily rental housing, with a significant majority being affordable to households earning at or below 120% of the area median income, providing support for both workforce and affordable housing.
Fannie Mae's single-family conventional acquisition volume was $62.3 billion in Q1 2024, with the average single-family conventional guaranty book of business decreasing by $6.9 billion to $3,631 billion, driven by liquidations outpacing acquisition volumes during the quarter. The single-family serious delinquency rate decreased to 0.51% in Q11 2024 from 0.55% in Q4 2023.
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In the multifamily segment, new business volume was $10.1 billion in Q1 2024, and the multifamily guaranty book of business grew by 1% to $476.9 billion. The multifamily serious delinquency rate decreased to 0.44% at the end of March, compared with 0.46% as of Dec. 31, 2023.
“The strength of the US economy, higher single-family home prices, and the credit quality of our book of business continue to be important factors affecting our performance,” Fannie Mae CEO Priscilla Almodovar said in a media release. “This quarter, we provided $72 billion in liquidity to the US housing market. This helped 280,000 households buy, refinance, or rent a home and reflects our strong commitment to managing risk and fulfilling our vital role in supporting America’s housing finance system.”
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