Fannie Mae Multifamily Reports Net Income for Third Quarter 2018

Multifamily Wire

Multifamily Facts

Jeff HaywardFannie 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. Together, we continue to be a leading source of financing and securitization for quality rental housing, while balancing risk and return -- in every market, for every income level, every day.

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 net income was $549 million in the third quarter of 2018, compared with $504 million in the second quarter of 2018. The increase in net income in the third quarter of 2018 was driven primarily by an increase in guaranty fee revenue as the multifamily guaranty book grew during the quarter.
  • Together with our Lender Partners, Multifamily provided financing for approximately 206,000 units of multifamily housing in the third 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.
  • Approximately 42% of our multifamily new business volumes of $44 billion for the first nine months of the 2018 counted toward FHFA's 2018 multifamily volume cap of $35 billion.
  • Together with our Lender Partners, Multifamily provided more than $4 billion in Green Financing in the third quarter of 2018, bringing Green Financing in the first three quarters of 2018 to more than $14 billion.
  • The multifamily serious delinquency rate was 0.07% as of September 30, 2018, compared with 0.11% as of December 31, 2017 and 0.03% as of September 30, 2017.
  • In the third quarter of 2018, we completed our third multifamily CIRT transaction since the inception of the program, which covered multifamily loans with an unpaid principal balance of approximately $11.1 billion.

Company Highlights

  • Fannie Mae reported net income of $4.0 billion and comprehensive income of $4.0 billion for the third 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 $140 billion in liquidity to the mortgage market in the third quarter of 2018, which enabled the financing of 726,000 home purchases, refinancings, and rental units.
  • Fannie Mae continued to transfer a portion of the credit risk on single-family and multifamily mortgages. As of September 30, 2018, $1.1 Trillion in single-family mortgages, or approximately 38% of 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 third quarter of 2018, nearly 100% of the company's new multifamily business volume had lender risk-sharing.

More information is available here:

Best,
Jeff