Fannie Mae Multifamily Reports Net Income of $376M for Q2 2014

Multifamily Wire

Multifamily Facts

August 7, 2014 -- Fannie Mae filed its second quarter 2014 financial results this morning, and it’s been another strong quarter for the company and for Multifamily. We’re continuing to deliver on our mission to provide liquidity to the mortgage market, enabling families to buy, refinance, or rent a home. A few highlights from our filing are below, including our multifamily results.

 

Company Highlights:

  • Fannie Mae reported net income of $3.7 billion and comprehensive income of $3.7 billion for the second quarter of 2014.
  • Fannie Mae expects to pay Treasury $3.7 billion in dividends in September 2014.
  • With the expected September dividend payment, Fannie Mae will have paid a total of $130.5 billion in dividends to Treasury in comparison to $116.1 billion in draw requests since 2008. Dividend payments do not offset prior Treasury draws.
  • Fannie Mae has funded the mortgage market with more than $4.2 trillion in liquidity since 2009, including approximately $96 billion in liquidity in the second quarter of 2014.

Multifamily Business Highlights:

  • Multifamily net income was $376 million in the second quarter of 2014, compared with $330 million in the first quarter of 2014. Net income in the second quarter of 2014 was driven primarily by guaranty fee income.
  • The Multifamily guaranty book of business was $197.6 billion as of June 30, 2014, compared with $199.0 billion as of March 31, 2014.
  • Multifamily provided approximately 93,000 units of multifamily housing during Q2 2014, with over 85% affordable to families earning at or below the median income in their area.   
  • The Multifamily serious delinquencies (SDQ) rate was .10 percent in Q2 2014 as compared to .28 percent in Q2 2013.

Additional Multifamily Capital Markets Income:

  • $136 million in net interest income (NII) on mortgage loans and MBS retained in portfolio earned in Q2 2014 compared to $178 million in Q2 2013. 

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