Fannie Mae Multifamily Announces 2015 Earnings

Multifamily Wire

Multifamily Facts

Multifamily Q4 2015 EarningsFebruary 19, 2016

Thank you for making 2015 an outstanding year for Fannie Mae Multifamily! Today, Multifamily posted annual net income of $1.5 billion. An additional $693 million in net interest income and yield maintenance income was earned on Fannie Mae multifamily mortgage loans and MBS.

It is our partnership and the success of our unique risk-sharing model that makes all the difference in our results. Together, we provided $42.3 billion of financing to the multifamily market, while maintaining prudent credit standards, a quality book of business, and delivering solid financial results. I look forward to a terrific 2016 and our continued partnership in providing financing and securitization for rental workforce housing � in every market, every day.

Multifamily Business Highlights

  • Multifamily annual net income was $1.5 billion. An additional $693 million in net interest income and yield maintenance income was earned on Fannie Mae multifamily mortgage loans and MBS recognized in the Capital Markets group's results. Fannie Mae Multifamily net income for the fourth quarter of 2015 was $334 million. Additional multifamily market making activity is reflected in the Capital Markets group’s results.
  • Multifamily net income was primarily driven by $1.4 billion in guaranty fee income in 2015, an increase from $1.3 billion in 2014. The Multifamily guaranty book of business was $213.4 billion as of December 31, 2015, compared with $203.3 billion as of December 31, 2014.
  • Multifamily provided financing for approximately 569,000 units of multifamily housing in 2015. Over 90% of the multifamily units we financed were affordable to families earning at or below 120% of the median income in their area, providing support for both workforce housing and affordable housing.
  • Our Affordable business increased by over $400 million from 2014 to $3 billion in 2015.
  • Multifamily new business volume for 2015 totaled $42.3 billion. Approximately 68% of Fannie Mae's multifamily new business volume counted towards FHFA’s 2015 multifamily volume cap.

Company Highlights

  • Fannie Mae reported annual net income of $11.0 billion and annual comprehensive income of $10.6 billion in 2015. For the fourth quarter of 2015, Fannie Mae reported net income of $2.5 billion and comprehensive income of $2.3 billion.
  • Fannie Mae paid a total of $10.3 billion in dividends to Treasury in 2015. The company expects to pay Treasury $2.9 billion in dividends in March 2016. With the expected March 2016 dividend payment, the company will have paid a total of $147.6 billion in dividends to Treasury. Dividend payments do not reduce prior Treasury draws, which total $116.1 billion since 2008.
  • Fannie Mae provided approximately $516 billion in liquidity to the mortgage market in 2015, including approximately $116 billion in liquidity in the fourth quarter of 2015, enabling families to buy, refinance, or rent homes

Best,

Jeff