EX-99.1 2 fnma2024q2pressrelease.htm EX-99.1 Document
cs160787prheadera06a.jpg
Contact:     Pete Bakel      Resource Center: 1-800-232-6643
    202-752-2034                                     Exhibit 99.1
Date:    July 30, 2024                                         

Fannie Mae Reports Net Income of $4.5 Billion for Second Quarter 2024
•
$4.5 billion net income for the second quarter of 2024, with net worth reaching $86.5 billion as of June 30, 2024
“Fannie Mae had another strong quarter, generating $4.5 billion in net income. Our net worth reached $86.5 billion, further strengthening our financial stability, and our capital position continued to improve. This quarter, we provided $95 billion in liquidity to the housing market, helping 330,000 households buy, refinance, or rent a home. Half of our single-family purchase acquisitions this quarter were loans made to first-time homebuyers, demonstrating that today’s housing affordability pressures have not changed the desire to own a home. That’s why managing risk and partnering with the industry to help consumers on their housing journeys remain top priorities.”

Priscilla Almodovar
President & Chief Executive Officer

•
Net income increased $164 million in the second quarter of 2024 compared with the first quarter of 2024, primarily driven by increases in net interest income and benefit for credit losses
•
$95 billion in liquidity provided in the second quarter of 2024, which enabled the financing of approximately 330,000 home purchases, refinancings, and rental units
•
Acquired approximately 213,000 single-family purchase loans, of which approximately half were for first-time homebuyers, and approximately 45,000 single-family refinance loans during the second quarter of 2024
•
Financed approximately 72,000 units of multifamily rental housing in the second quarter of 2024; a significant majority were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing
•
Home prices grew 3.0% on a national basis in the second quarter of 2024 according to the Fannie Mae Home Price Index
•
The U.S. weekly average 30-year fixed-rate mortgage rate increased from 6.79% as of the end of the first quarter of 2024 to 6.86% as of the end of the second quarter of 2024
Q2 2024 Key Results
$86.5 Billion Net Worth
$168 Billion Supporting Housing Activity
Increase of $4.5 billion in the second quarter of 2024
SF Home PurchasesSF RefinancingsMF Rental Units
chart-15945f5679ad49848fba.jpg chart-6868fdc76d54452299ba.jpg
$4.5 Billion Net Income for Q2 2024
Serious Delinquency Rates
Increase of $164 million compared with first quarter 2024
Single-Family SDQ RateMultifamily SDQ Rate
chart-fe5e4c475b9f4938a7ba.jpg chart-dc61dd2a625e4f06b25a.jpg
cs160787prfootera02a.jpg
Second Quarter 2024 Results
1
cs160787prheadera06a.jpg

Summary of Financial Results
(Dollars in millions)Q224Q124Variance% ChangeQ223Variance% Change
Net interest income$7,268 $7,023 $245 3 %$7,035 $233 3 %
Fee and other income68 72 (4)(6)%70 (2)(3)%
Net revenues7,336 7,095 241 3 %7,105 231 3 %
Investment gains (losses), net(62)22 (84)NM25 (87)NM
Fair value gains (losses), net447 480 (33)(7)%404 43 11 %
Administrative expenses(939)(929)(10)(1)%(864)(75)(9)%
Benefit (provision) for credit losses300 180 120 67 %1,266 (966)(76)%
TCCA fees(859)(860)1 — %*(856)(3)— %*
Credit enhancement expense(1)
(405)(419)14 3 %(384)(21)(5)%
Change in expected credit enhancement recoveries37 63 (26)(41)%(160)197 NM
Other expenses, net(2)
(251)(199)(52)(26)%(257)6 2 %
Income before federal income taxes5,604 5,433 171 3 %6,279 (675)(11)%
Provision for federal income taxes(1,120)(1,113)(7)(1)%(1,285)165 13 %
Net income$4,484 $4,320 $164 4 %$4,994 $(510)(10)%
Total comprehensive income$4,477 $4,324 $153 4 %$4,995 $(518)(10)%
Net worth$86,483 $82,006 $4,477 5 %$69,044 $17,439 25 %
NM - Not meaningful
* Represents less than 0.5%
(1) Consists of costs associated with freestanding credit enhancements, which primarily include the company’s Connecticut Avenue Securities® (“CAS”) and Credit Insurance Risk TransferTM programs, enterprise-paid mortgage insurance, and certain lender risk-sharing programs.
(2) Includes debt extinguishment gains and losses, expenses associated with legal claims, foreclosed property income (expense), gains and losses from partnership investments, housing trust fund expenses, loan subservicing costs, and servicer fees paid in connection with certain loss mitigation activities.
Financial Highlights
Net income increased $164 million in the second quarter of 2024 compared with the first quarter of 2024, primarily driven by increases in net interest income and benefit for credit losses.
•
Net interest income increased in the second quarter of 2024 compared with the first quarter of 2024 primarily driven by increases in both deferred guaranty fee income and interest income from portfolios.
•
Benefit for credit losses was $300 million in the second quarter of 2024, compared with $180 million in the first quarter of 2024. The benefit for credit losses in the second quarter of 2024 reflects a $548 million single-family benefit for credit losses, partially offset by a $248 million multifamily provision for credit losses.
• The single-family benefit for credit losses in the second quarter of 2024 was primarily driven by a benefit from actual and forecasted home price growth, partially offset by a provision on newly acquired loans.
• The multifamily provision for credit losses in the second quarter of 2024 was primarily driven by continued declines in estimated actual and near-term projected multifamily property values and the impact of new 30-day loan delinquencies in the company’s multifamily guaranty book of business.
cs160787prfootera02a.jpg
Second Quarter 2024 Results
2
cs160787prheadera06a.jpg
Single-Family Business Financial Results
(Dollars in millions)Q224Q124Variance% ChangeQ223Variance% Change
Net interest income$6,096 $5,874 $222 4 %$5,917 $179 3 %
Fee and other income51 55 (4)(7)%52 (1)(2)%
Net revenues6,147 5,929 218 4 %5,969 178 3 %
Investment gains (losses), net(70)13 (83)NM27 (97)NM
Fair value gains (losses), net454 484 (30)(6)%460 (6)(1)%
Administrative expenses(784)(777)(7)(1)%(718)(66)(9)%
Benefit (provision) for credit losses548 335 213 64 %1,418 (870)(61)%
TCCA fees(859)(860)1 — %*(856)(3)— %*
Credit enhancement expense(333)(353)20 6 %(327)(6)(2)%
Change in expected credit enhancement recoveries(47)(42)(5)(12)%(223)176 79 %
Other expenses, net(218)(176)(42)(24)%(203)(15)(7)%
Income before federal income taxes4,838 4,553 285 6 %5,547 (709)(13)%
Provision for federal income taxes(983)(946)(37)(4)%(1,153)170 15 %
Net income$3,855 $3,607 $248 7 %$4,394 $(539)(12)%
Average charged guaranty fee on new conventional acquisitions, net of TCCA fees51.9 bps54.8 bps(2.9) bps(5)%52.2 bps(0.3) bps(1)%
Average charged guaranty fee on conventional guaranty book of business, net of TCCA fees47.6 bps47.4 bps0.2 bps— %*46.8 bps0.8 bps2 %
NM - Not meaningful
* Represents less than 0.5%
Key Business Highlights
•
Single-family conventional acquisition volume was $85.9 billion in the second quarter of 2024, compared with $62.3 billion in the first quarter of 2024. Purchase acquisition volume, of which approximately half was for first-time homebuyers, increased to $74.5 billion in the second quarter of 2024 from $53.0 billion in the first quarter of 2024. Refinance acquisition volume was $11.4 billion in the second quarter of 2024, an increase from $9.3 billion in the first quarter of 2024.
•
The average single-family conventional guaranty book of business decreased by $6.4 billion to $3,624.8 billion in the second quarter of 2024 compared with the first quarter of 2024, driven by loan paydowns, liquidations, and sales outpacing acquisition volumes during the quarter. The overall credit characteristics of the single-family conventional guaranty book of business remained strong, with a weighted-average mark-to-market loan-to-value ratio of 50% and a weighted-average FICO credit score at origination of 753 as of June 30, 2024.
•
The average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book remained relatively flat at 47.6 basis points in the second quarter of 2024. The average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, decreased to 51.9 basis points in the second quarter of 2024, primarily as a result of a shift in product mix and an improvement in credit profile.
•
The single-family serious delinquency rate decreased to 0.48% as of June 30, 2024 from 0.51% as of March 31, 2024. Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process.
cs160787prfootera02a.jpg
Second Quarter 2024 Results
3
cs160787prheadera06a.jpg
Multifamily Business Financial Results
(Dollars in millions)Q224Q124Variance% ChangeQ223Variance% Change
Net interest income$1,172 $1,149 $23 2 %$1,118 $54 5 %
Fee and other income17 17 — — %18 (1)(6)%
Net revenues1,189 1,166 23 2 %1,136 53 5 %
Fair value gains (losses), net(7)(4)(3)(75)%(56)49 88 %
Administrative expenses(155)(152)(3)(2)%(146)(9)(6)%
Benefit (provision) for credit losses(248)(155)(93)(60)%(152)(96)(63)%
Credit enhancement expense(72)(66)(6)(9)%(57)(15)(26)%
Change in expected credit enhancement recoveries84 105 (21)(20)%63 21 33 %
Other expenses, net*(25)(14)(11)(79)%(56)31 55 %
Income before federal income taxes766 880 (114)(13)%732 34 5 %
Provision for federal income taxes(137)(167)30 18 %(132)(5)(4)%
Net income$629 $713 $(84)(12)%$600 $29 5 %
Average charged guaranty fee rate on multifamily guaranty book of business, at period end 75.5 bps75.8 bps(0.3) bps— %**77.4 bps(1.9) bps(2)%
* Includes investment gains or losses and other income or expenses.
** Represents less than 0.5%
Key Business Highlights
•
New multifamily business volume was $9.3 billion in the second quarter of 2024, compared with $10.1 billion in the first quarter of 2024.
•
The multifamily guaranty book of business grew by 1% in the second quarter of 2024 to $480.1 billion, driven by the company’s acquisitions combined with low prepayment volumes due to the high interest rate environment.
•
The average charged guaranty fee on the multifamily guaranty book declined slightly in the second quarter to 75.5 basis points as of June 30, 2024, primarily due to lower average charged fees on the company's second quarter 2024 acquisitions as compared with the existing loans in the multifamily guaranty book of business.
•
The multifamily serious delinquency rate was flat at 0.44% as of June 30, 2024 and March 31, 2024. Multifamily seriously delinquent loans are loans that are 60 days or more past due.
    
cs160787prfootera02a.jpg
Second Quarter 2024 Results
4
cs160787prheadera06a.jpg
Additional Matters
Fannie Mae’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income for the second quarter of 2024 are available in the accompanying Annex; however, investors and interested parties should read the company’s Second Quarter 2024 Form 10-Q, which was filed today with the Securities and Exchange Commission and is available on Fannie Mae’s website, www.fanniemae.com. The company provides further discussion of its financial results and condition, credit performance, and other matters in its Second Quarter 2024 Form 10-Q. Additional information about the company’s financial and credit performance is contained in Fannie Mae’s “Q2 2024 Financial Supplement” at www.fanniemae.com.

# # #

Fannie Mae provides website addresses in its news releases solely for readers’ information. Other content or information appearing on these websites is not part of this release.

Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit fanniemae.com.
cs160787prfootera02a.jpg
Second Quarter 2024 Results
5
cs160787prheadera06a.jpg
ANNEX
FANNIE MAE
(In conservatorship)
Condensed Consolidated Balance Sheets — (Unaudited)
(Dollars in millions)
As of
June 30, 2024December 31, 2023
ASSETS
Cash and cash equivalents$41,911 $35,817 
Restricted cash and cash equivalents (includes $29,789 and $25,836, respectively, related to consolidated trusts)36,402 32,889 
Securities purchased under agreements to resell27,650 30,700 
Investments in securities, at fair value49,899 53,116 
Mortgage loans:
Loans held for sale, at lower of cost or fair value646 2,149 
Loans held for investment, at amortized cost:
Of Fannie Mae49,196 48,199 
Of consolidated trusts4,087,398 4,094,013 
 Total loans held for investment (includes $3,194 and $3,315, respectively, at fair value)4,136,594 4,142,212 
Allowance for loan losses(8,026)(8,730)
Total loans held for investment, net of allowance4,128,568 4,133,482 
Total mortgage loans4,129,214 4,135,631 
Advances to lenders1,856 1,389 
Deferred tax assets, net11,036 11,681 
Accrued interest receivable, net (includes $10,654 and $10,132 related to consolidated trusts)11,156 10,724 
Other assets14,769 13,490 
Total assets$4,323,893 $4,325,437 
LIABILITIES AND EQUITY
Liabilities:
Accrued interest payable (includes $10,524 and $10,212, respectively, related to consolidated trusts)$11,176 $10,931 
Debt:
Of Fannie Mae (includes $544 and $761, respectively, at fair value)118,543 124,065 
Of consolidated trusts (includes $13,239 and $14,343, respectively, at fair value)4,094,421 4,098,653 
Other liabilities (includes $1,673 and $1,713, respectively, related to consolidated trusts)13,270 14,106 
Total liabilities4,237,410 4,247,755 
Commitments and contingencies (Note 14)— — 
Fannie Mae stockholders’ equity:
Senior preferred stock (liquidation preference of $203,505 and $195,224, respectively)120,836 120,836 
Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding19,130 19,130 
Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 1,158,087,567 shares outstanding687 687 
Accumulated deficit(46,799)(55,603)
Accumulated other comprehensive income29 32 
Treasury stock, at cost, 150,675,136 shares(7,400)(7,400)
Total stockholders’ equity
86,483 77,682 
Total liabilities and equity$4,323,893 $4,325,437 

See Notes to Condensed Consolidated Financial Statements in the Second Quarter 2024 Form 10-Q








cs160787prfootera02a.jpg
Second Quarter 2024 Results
6
cs160787prheadera06a.jpg
FANNIE MAE
(In conservatorship)
Condensed Consolidated Statements of Operations and Comprehensive Income — (Unaudited)
(Dollars in millions, except per share amounts)

For the Three Months Ended June 30,For the Six Months Ended June 30,
2024202320242023
Interest income:
Investments in securities$915 $1,101 $1,836 $2,082 
Mortgage loans35,617 32,655 70,833 64,792 
Other743 584 1,404 1,036 
Total interest income37,275 34,340 74,073 67,910 
Interest expense:
Short-term debt(130)(183)(325)(302)
Long-term debt(29,877)(27,122)(59,457)(53,787)
Total interest expense(30,007)(27,305)(59,782)(54,089)
Net interest income7,268 7,035 14,291 13,821 
Benefit (provision) for credit losses300 1,266 480 1,134 
Net interest income after benefit (provision) for credit losses7,568 8,301 14,771 14,955 
Investment gains (losses), net(62)25 (40)(42)
Fair value gains (losses), net447 404 927 608 
Fee and other income68 70 140 133 
Non-interest income453 499 1,027 699 
Administrative expenses:
Salaries and employee benefits(496)(467)(1,007)(947)
Professional services(218)(192)(419)(376)
Other administrative expenses(225)(205)(442)(409)
Total administrative expenses(939)(864)(1,868)(1,732)
TCCA fees(859)(856)(1,719)(1,711)
Credit enhancement expense(405)(384)(824)(725)
Change in expected credit enhancement recoveries37 (160)100 (40)
Other expenses, net(251)(257)(450)(387)
Total expenses(2,417)(2,521)(4,761)(4,595)
Income before federal income taxes5,604 6,279 11,037 11,059 
Provision for federal income taxes(1,120)(1,285)(2,233)(2,293)
Net income4,484 4,994 8,804 8,766 
Other comprehensive income (loss)(7)1 (3)1 
Total comprehensive income$4,477 $4,995 $8,801 $8,767 
Net income$4,484 $4,994 $8,804 $8,766 
Dividends distributed or amounts attributable to senior preferred stock
(4,477)(4,995)(8,801)(8,767)
Net income (loss) attributable to common stockholders$7 $(1)$3 $(1)
Earnings per share:
Basic$0.00 $0.00 $0.00 $0.00 
Diluted0.00 0.00 0.00 0.00 
Weighted-average common shares outstanding:
Basic5,867 5,867 5,867 5,867 
Diluted5,893 5,867 5,893 5,867 

See Notes to Condensed Consolidated Financial Statements in the Second Quarter 2024 Form 10-Q
cs160787prfootera02a.jpg
Second Quarter 2024 Results
7