Find out how it fared amidst a 'challenging' year
Fannie Mae reported net income of $3.9 billion for 2023’s final quarter and a full-year total of $17.4 billion as the government-sponsored housing entity’s net worth spiked and it recorded a credit loss benefit.
Fannie’s earnings release Thursday showed its net income jumped by $4.5 billion over the year compared with 2022, a result it said was spurred mainly by a $7.9 billion switch from provision for credit losses to a benefit in 2023.
Its net worth hit $77.7 billion by the end of the year, a significant increase from $60.3 billion in 2022 and $47.4 billion in 2021.
The entity’s provision of $369 billion in liquidity throughout 2023 helped finance around 1.5 million home purchases, refinancings, and rental units, while it also snapped up about 805,000 single-family purchase loans.
Around 45% of those single-family purchases were for first-time homebuyers, Fannie said, with about 179,000 single-family refinance loans made during the year.
CEO Priscilla Almodovar on our latest results: “In 2023, Fannie Mae delivered $17.4 billion in earnings and provided $369 billion in liquidity, helping 1.5 million households buy, refinance, or rent a home. As we close on our 85th year, we remain committed to being a reliable… pic.twitter.com/F7cyZSwZPg
— Fannie Mae (@FannieMae) February 15, 2024
On the multifamily rental housing side, Fannie financed about 482,000 units in 2023, of which a “significant majority” were accessible to households earning at or below 120% of area median income.
Fannie’s chief executive officer Priscilla Almodovar said its Q4 earnings marked a successful return after a turbulent year on the housing front marked by high mortgage rates, low housing inventory and continuing affordability challenges.
Its home price index showed that home prices jumped by 7.1% nationally in 2023, with the weekly average 30-year fixed-rate mortgage rate also climbing slightly year over year from 6.42% at the end of 2022 to 6.61% at the end of last year.
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