Fannie Mae Multifamily Releases Q1 2015 Earnings

Multifamily Wire

Multifamily Facts

May 7, 2015 - Fannie Mae filed its first quarter 2015 financial results this morning, and it's been another solid quarter for the company and for our Multifamily business. Thank you for your partnership - it's what makes these great results possible. Thanks to you, we continue to be the leading source of financing and securitization for quality rental housing in the United States, while balancing risk and return - in every market, for every income level, every day.

A few highlights from our filing are below.

Multifamily Business Highlights

  • Multifamily net income for the first quarter of 2015 was $483 million, with an additional $170 million in net interest income and yield maintenance income earned on Fannie Mae multifamily mortgage loans and MBS recognized in the Capital Markets group's results. Additional activity related to multifamily products, including market-making, is reflected in the Capital Markets group's results.
  • Multifamily net income was primarily driven by $340 million in guaranty fee income in the first quarter of 2015. The Multifamily guaranty book of business was $206.7 billion as of March 31, 2015, compared with $203.3 billion as of December 31, 2014.
  • Multifamily's serious delinquency rate remained low at .09% as of March 31, 2015, a slight increase from .05% as of December 31, 2014.
  • Multifamily provided financing for approximately 134,000 units of multifamily housing in the first quarter of 2015. Over 80% 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 net income of $1.9 billion and comprehensive income of $1.8 billion for the first quarter of 2015.
  • Fannie Mae expects to pay $1.8 billion in dividends to Treasury in June 2015. With the expected June dividend payment, the company will have paid a total of $138.2 billion in dividends to Treasury. Dividend payments do not reduce prior Treasury draws, which total $116.1 billion since 2008.
  • Fannie Mae provided approximately $124 billion in liquidity to the mortgage market in the first quarter of 2015, enabling families to buy, refinance, or rent homes.

More information is available here:

If you have any questions about earnings or any other aspect of the multifamily business, please don't hesitate to reach out to me.

Best,

Jeff