Fannie Mae Multifamily Reports Net Income for Q1 2019

Multifamily Wire

Multifamily Facts

Jeff HaywardFannie Mae filed its first quarter financial results this morning and I'm pleased to report that it's another solid quarter for the company and Multifamily. It is our partnership in The Loan We All Own™ that makes all the difference in our results.

I know we couldn't continue to achieve these results without you and I thank you for your business and continued partnership in serving the rental housing market.

Below are some highlights from our filing.

Multifamily Business Highlights

  • Multifamily's net income was $575 million in the first quarter of 2019, driven by $694 million in net interest income. Over 80% of our multifamily net interest income during the quarter was derived from guaranty fees, which continued to provide a stable driver of earnings for the business. The multifamily guaranty book of business reached over $310 billion in the first quarter of 2019.
  • Fannie Mae provided $16.9 billion in multifamily financing in the first quarter of 2019, which supported 171,000 units of multifamily housing. Over 85% of the multifamily units the company financed were affordable to families earning at or below 120% of the area median income, providing support for both affordable and workforce housing. Approximately 63% of Fannie Mae's multifamily business volume in the first quarter of 2019 counted toward FHFA's 2019 multifamily volume cap.
  • Fannie Mae continued to be one of the largest issuers of Green Bonds in the world, issuing more than $54 billion in Green Bonds through the first quarter of 2019 since the inception of the program.
  • In the first quarter of 2019, the company completed its fifth multifamily Credit Insurance Risk Transfer TM (CIRT) transaction, which covered multifamily loans with an unpaid principal balance of $11.7 billion. As of March 31, 2019, $49 billion in multifamily mortgages or 15% of the loans in the company's multifamily guaranty book of business, measured by unpaid principal balance, were covered by a CIRT transaction.
  • The multifamily serious delinquency rate remained low at 0.07% as of March 31, 2019.

Company Highlights

  • Fannie Mae reported first quarter 2019 net income of $2.4 billion, reflecting the strength of the company's underlying business fundamentals.
  • The company's net worth of $5.4 billion as of March 31, 2019 reflected its comprehensive income of $2.4 billion for the first quarter of 2019 and $3.0 billion in retained capital reserves.
  • Fannie Mae provided $102 billion in liquidity to the mortgage market in the first quarter of 2019, through its purchases of loans and guarantees of loans and securities, which enabled the financing of approximately 527,000 home purchases, refinancings, or rental units.

More information is available here:

News release reporting first quarter 2019 financial results
Fannie Mae's Form 10-Q for the quarter ended March 31, 2019
Q1 2019 Quarterly Financial Supplement

Best,

Jeff