Find out how the GSE fared in 2024's second quarter
Fannie Mae’s net income rose in 2024’s second quarter, jumping by $164 million over the same time last year in an increase spurred by higher net interest income and benefit for credit losses.
The government-sponsored enterprise said on Tuesday that it had generated $4.5 billion in net income in Q2, seeing its net worth hit the $86.5 billion mark during the quarter. In total, it provided $95 billion in liquidity in that period, according to a news release, with 330,000 home purchases, refinancings and rental units financed.
Fannie posted a $300 million benefit for credit losses in the second quarter. A single-family benefit to the tune of $548 million helped offset a $248 million provision for credit losses on the multifamily side, meaning the overall benefit for credit losses increased substantially over Q1 ($180 million).
Net interest income was also on the rise on a quarterly basis thanks to increases in deferred guaranty fee income and interest income from portfolios.
The single-family conventional side formed the bulk of Fannie’s acquisition volume in Q2, rising from $62.3 billion in the first quarter to $85.9 billion this time around. The GSE said first-time homebuyers made up around half of purchase volume, while refinancing also ticked up – to $11.4 billion in Q2 compared with $9.3 billion the prior quarter.
About 213,000 single-family purchase loans were acquired by Fannie during the quarter, as single-family refinance loans came in at 45,000 for the three-month period.
Serious delinquencies on the single-family front, meanwhile, continued to inch downwards. That rate fell to 0.48% by June 30, compared with 0.51% at the end of March.
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