August 6, 2015 - Fannie Mae filed its second quarter 2015 financial results this morning, and it's been another strong quarter for the company and for our Multifamily business. These results are a true testament to our strong partnerships with our Lenders and our continued pursuit of excellence in serving them. Multifamily is committed to being 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 second quarter of 2015 was $366 million. An additional $222 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. Other activity related to multifamily products is also reflected in the Capital Markets group's results.
- Multifamily net income was primarily driven by $357 million in guaranty fee income in the second quarter of 2015. The Multifamily guaranty book of business was $213.2 billion as of June 30, 2015, compared with $206.7 billion as of March 31, 2015.
- Multifamily's serious delinquency rate as of June 30, 2015 was .05%, a decrease from .09% as of March 31, 2015.
- Multifamily provided financing for approximately 181,000 units of multifamily housing in the second quarter of 2015. Approximately 80% of the multifamily units we financed in the second quarter are affordable to families earning at or below the median income in their area.
- Multifamily new business volume for the second quarter of 2015 totaled $15 billion, resulting in volume for the first half of the year of $25 billion. Approximately 70% of Fannie Mae Multifamily's new business volume during the first half of 2015 counted towards the 2015 FHFA volume cap and the remaining 30% was excluded. While we continue exploring additional opportunities to provide affordable and workforce housing financing, we expect to remain within the 2015 FHFA volume cap
- Fannie Mae reported net income of $4.6 billion and comprehensive income of $4.4 billion for the second quarter of 2015.
- Fannie Mae expects to pay $4.4 billion in dividends to Treasury in September 2015. With the expected September dividend payment, the company will have paid a total of $142.5 billion in dividends to Treasury. Dividend payments do not reduce prior Treasury draws, which total $116.1 billion since 2008.
- Fannie Mae provided approximately $144 billion in liquidity to the mortgage market in the second 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.