Fannie Mae Reports Net Income of $4.5 Billion and Comprehensive Income of $4.5 Billion for Second Quarter 2018

Multifamily Wire

Multifamily Facts

Q2 2018 EarningsFannie Mae filed its second quarter financial results this morning and I'm pleased to report that it's another solid quarter for the company and Multifamily. 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.

Some highlights from our filing are below.

Multifamily Business Highlights

  • Multifamily's pre-tax income was $596 million and its net income was $504 million in the second quarter of 2018, driven by $654 million in net interest income, which primarily consists of guaranty fee revenue.
  • Together with our Lender Partners, Multifamily provided financing for 188,000 units of multifamily housing in the second quarter of 2018. Over 90% 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.
  • Together with our Lender Partners, Multifamily provided more than $10 billion in Green Financing in the first half of 2018. Additionally, in the first half of 2018, we issued $2.1 billion in Green GeMS™ -- re-securitizations backed by Fannie Mae Green MBS.
  • The multifamily serious delinquency rate was 0.10% as of June 30, 2018, compared with 0.11% as of December 31, 2017.

Company Highlights

  • Fannie Mae reported net income of $4.5 billion and comprehensive income of $4.5 billion for the second quarter of 2018, reflecting the strength of the company's underlying business fundamentals.
  • Through Fannie Mae's single-family and multifamily business segments, the company provided $125 billion in liquidity to the mortgage market in the second quarter of 2018, which enabled the financing of 665,000 home purchases, refinancings, or rental units.
  • Fannie Mae continued to transfer a portion of the credit risk on single-family and multifamily mortgages. As of June 30, 2018, $1.0 trillion in single-family mortgages, or approximately 35% of the loans in the company's single-family conventional guaranty book of business, measured by unpaid principal balance, were covered by a credit risk transfer transaction. In addition, in the second quarter of 2018, nearly 100% of the company's new multifamily business volume had lender risk-sharing.

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