Net income surges
Mortgage finance provider Fannie Mae delivered a strong performance in the second quarter of the year, with net income hitting $5 billion – up $1.2 billion on the previous quarter.
The increase in net income was primarily driven by a $1.4 billion shift from provision for credit losses to benefit for credit losses.
Due to the growth in income from the company’s other investments portfolio and an increase in amortization income, Fannie Mae’s net interest income also increased by $249 million in the second quarter of 2023 when compared with the first quarter.
According to the firm’s report on its Q2 2023 financial results, benefit for credit losses was $1.3 billion from April to June, compared with a provision of $132 million in the year’s first three months. The benefit for credit losses was driven by a single-family credit benefit, partially offset by a modest multifamily provision.
CEO Priscilla Almodovar on our latest results: “With our solid second quarter performance, Fannie Mae continues to serve as a stabilizing force for America’s housing finance system in even the most challenging markets.” Read more: https://t.co/gzZlCrA9fd pic.twitter.com/pKGPO8EfYX
— Fannie Mae (@FannieMae) August 1, 2023
Fannie Mae also reported $104 billion in liquidity provided to the mortgage market in the second quarter, up from the $78 billion in liquidity provided in the previous quarter.
The company acquired approximately 227,000 single-family purchase loans, of which more than 45% were for first-time homebuyers, and approximately 54,000 single-family refinance loans during the period. It also financed approximately 139,000 units of multifamily rental housing, a significant majority of which were affordable to households earning at or below 120% of area median income.
“With our solid second quarter performance, Fannie Mae continues to serve as a stabilizing force for America’s housing finance system in even the most challenging markets,” Priscilla Almodovar (pictured), chief executive at Fannie Mae, stated.
“After nearly 15 years of transformation, today, Fannie Mae is safer and stronger. This is thanks to our team’s dedicated efforts to improve the resiliency of our business and our steadfast focus on risk management.”
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