The government-sponsored enterprise released its latest earnings as speculation continues to surround its future under Trump
Fannie Mae reported $17.0 billion in net income for 2024, including $4.1 billion in the fourth quarter, as strong guaranty fee revenues bolstered its bottom line despite elevated interest rates.
The government-sponsored enterprise (GSE) ended the year with $94.7 billion in net worth, further strengthening its capital position as speculation grows over its potential exit from federal conservatorship under the Trump administration.
The mortgage giant said in a news release Friday that it provided $381 billion in liquidity to the housing market in 2024, enabling the financing of about 1.4 million home purchases, refinancings, and rental units.
Among its acquisitions were 778,000 single-family purchase loans, about half of which went to first-time homebuyers, and 204,000 single-family refinance loans. On the multifamily side, Fannie Mae financed 420,000 rental units, with the majority deemed affordable for households earning 120% or less of area median income.
Revenue strength despite market challenges
Fannie Mae generated $29.1 billion in total revenue for 2024, primarily driven by its $4.1 trillion guaranty book of business. The single-family segment contributed $24.4 billion in revenues, stemming from its $3.6 trillion conventional guaranty book, where the average charged guaranty fee stood at 47.6 basis points.
Seventy-seven percent (77%) of the underlying mortgages in Fannie Mae’s single-family book carried interest rates below 5%, reflecting the lingering effects of historically low borrowing costs in prior years.
The Trump admin’s regulatory changes continue, but Fannie Mae and Freddie Mac’s future remains uncertain. Kevin Ryan of Better .com says privatization is “doable, but complicated,” requiring work on capital standards and returns.https://t.co/Xp1BMBdmk5
— Mortgage Professional America Magazine (@MPAMagazineUS) February 6, 2025
Multifamily revenues came in at $4.7 billion, supported by a $499.7 billion multifamily guaranty book with an average guaranty fee of 74.4 basis points. Credit performance remained strong across both sectors, with serious delinquency rates of 0.56% for single-family loans and 0.57% for multifamily loans.
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