Fannie Mae Multifamily Releases Q3 2015 Earnings

Multifamily Wire

Multifamily Facts

November 5, 2015 -- Fannie Mae filed its third quarter financial results this morning and I’m pleased to report that it’s another solid quarter for the company and Multifamily. Our strong partnership with you and the terrific business we conduct together are what make these results possible.  Thank you for your business and continued partnership.

Below are highlights from our filing.

Multifamily Business Highlights

  • Multifamily net income for the third quarter of 2015 was $324 million. An additional $181 million in net interest income and yield maintenance income was earned on Fannie Mae multifamily mortgage loans and MBS recognized in our Capital Markets results. Other activity related to multifamily products also is reflected in our Capital Markets results.
  • Multifamily net income was primarily driven by $367 million in guaranty fee income in the third quarter of 2015. The Multifamily guaranty book of business was $212.1 billion as of September 30, 2015, compared with $213.2 billion as of June 30, 2015.
  • Multifamily's serious delinquency rate as of September 30, 2015 was .05%, consistent with the rate as of June 30, 2015.
  • Multifamily provided financing for approximately 118,000 units of multifamily housing in the third quarter of 2015. Over 80% of those units are affordable to families earning at or below the median income in their area.
  • Multifamily new business volume for the third quarter of 2015 totaled $7.3 billion, resulting in volume for the first nine months of the year of $32.3 billion. Approximately 68% of Fannie Mae’s multifamily new business volume for the first nine months of 2015 counted towards FHFA’s 2015 multifamily volume cap.

Company Highlights

  • Fannie Mae reported net income of $2.0 billion and comprehensive income of $2.2 billion for the third quarter of 2015.
  • Fannie Mae expects to pay $2.2 billion in dividends to Treasury in December 2015. With the expected December dividend payment, the company will have paid a total of $144.8 billion in dividends to Treasury. Dividend payments do not reduce prior Treasury draws, which total $116.1 billion since 2008.
  • Fannie Mae provided approximately $132 billion in liquidity to the mortgage market in the third quarter of 2015, enabling families to buy, refinance, or rent homes.

More information is available here:

Best,

Jeff