Fannie Mae Multifamily Strong with $384M in Net Income in Q3 2014

Multifamily Wire

Multifamily Facts

November 6, 2014 - Fannie Mae filed its third quarter 2014 financial results this morning, and it’s been another solid quarter for the company and for our Multifamily business. We continue to deliver on our mission to provide liquidity and affordability to the mortgage market, enabling families to buy, refinance, or rent homes. A few highlights from our filing are below, including our multifamily results.

Company Highlights:

  • Fannie Mae reported net income of $3.9 billion and comprehensive income of $4.0 billion for the third quarter of 2014.
  • Fannie Mae expects to pay Treasury $4.0 billion in dividends in December 2014.
  • With the December dividend payment, Fannie Mae will have paid a total of $134.5 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 has funded the mortgage market with more than $4.3 trillion in liquidity since 2009, including approximately $123 billion in liquidity in the third quarter of 2014.

Multifamily Business Highlights:

  • Multifamily net income was $384 million in the third quarter of 2014, compared with $376 million in the second quarter of 2014. Net income in the third quarter of 2014 was driven primarily by guaranty fee income of $332 million.
  • The Multifamily guaranty book of business was $200.2 billion as of September 30, 2014, compared with $197.6 billion as of June 30, 2014.
  • The Multifamily serious delinquency rate (SDQ) was.09% as of September 30, 2014, a slight decrease from .10% as of June 30, 2014.
  • Multifamily provided financing for approximately 124,000 units of multifamily housing during the third quarter of 2014, with over 85% affordable to families earning at or below the median income in their area.

Additional Multifamily Capital Markets Income:

  • Capital Markets earned $120 million in net interest income (NII) on Fannie Mae multifamily mortgage loans and MBS retained in portfolio in the third quarter of 2014 compared to $136 million in the second quarter of 2014. 

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