Fannie Mae Multifamily Announces 2014 Earnings

Multifamily Wire

Multifamily Facts

February 20, 2014 - Fannie Mae Multifamily had another strong year in 2014, with $1.5 billion in net income and an additional $507 million in net interest income earned on Fannie Mae multifamily mortgage loans and MBS. Over the past year, our book of business grew; our already low serious delinquency rate fell even further; and we provided financing for 446,000 units of safe, quality rental housing.

Thank you - it’s our relationship with you that makes all of this possible. We’re proud to have been your business partner of choice in 2014. It is our unique risk-sharing model that makes all the difference in our results. I look forward to our continued success in the marketplace as we strive to win business together in every market, every day.

Multifamily Business Highlights

  • Multifamily annual net income was $1.5 billion, with an additional $507 million in net interest income 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 2014 was $373 million, with an additional $130 million in net interest income on multifamily mortgage loans and MBS. Additional activity from multifamily products is reflected in the Capital Markets group’s results, including market-making and other activity.
  • Multifamily net income was primarily driven by $1.3 billion in guaranty fee income in 2014.
  • The Multifamily guaranty book of business was $203.3 billion as of December 31, 2014, compared with $200.6 billion as of December 31, 2013.
  • The Multifamily serious delinquency rate was .05% as of December 31, 2014, a decrease from .10% as of December 31, 2013.
  • Multifamily provided financing for approximately 446,000 units of multifamily housing in 2014. Over 85% of the multifamily units we financed are affordable to families earning at or below the median income in their area.

Company Highlights

  • Fannie Mae reported annual net income of $14.2 billion and comprehensive income of $14.7 billion. Fannie Mae reported net income of $1.3 billion and comprehensive income of $1.3 billion for the fourth quarter of 2014. 
  • Fannie Mae expects to pay the U.S. Treasury $1.9 billion in dividends in March 2015.  With the March dividend payment, Fannie Mae will have paid a total of $136.4 billion in dividends to Treasury in comparison to $116.1 billion in draw requests since 2008. Dividend payments do not reduce prior Treasury draws.
  • Fannie Mae provided approximately $434 billion in liquidity to the mortgage market in 2014.

Best,

Jeff