Fannie Mae earned $4 billion during the second quarter as an increase in purchase mortgage activity helped push the government-sponsored enterprise to its highest quarterly profit in more than a year, the public-private corporation announced Wednesday.
Net income rose 7 percent from $3.7 billion during the first quarter and 20 percent from $3.3 billion a year earlier, according to the latest earnings release. Net revenue increased to $7.6 billion, up from $7.3 billion during the previous quarter.
The results marked Fannie Mae’s 34th consecutive profitable quarter and increased its net worth to $116.5 billion as of June 30, up from $112.7 billion at the end of March, the company said. Fannie Mae provided $125 billion in mortgage-market liquidity during the quarter, supporting approximately 201,000 home purchases, 117,000 refinances and 99,000 rental units.
“Fannie Mae’s strong second quarter earnings of $4 billion are up 20 percent year over year, growing its net worth to more than $116 billion,” FHFA Director and Fannie Mae board Chair William Pulte said in the earnings release. “This shows the company’s continued stability and growth, all while reaching $3 billion in estimated homeowner savings since 2018 through innovative appraisal alternatives.”
Nearly 110,000 first-time buyers purchased homes with financing backed by Fannie Mae, accounting for 55 percent of the company’s single-family purchase acquisitions during the quarter. Its foreclosure-prevention programs also helped more than 21,000 homeowners remain in their homes, according to the company.
Single-family conventional acquisition volume increased to $111.2 billion from $98.7 billion during the first quarter. The increase was driven by purchase acquisition volume, which rose by $17.9 billion to $72.8 billion. Refinance volume declined by $5.4 billion to $38.4 billion.
By the numbers
- $4 billion: Second-quarter net income, up 20 percent year over year
- $116.5 billion: Fannie Mae’s net worth as of June 30
- $125 billion: Mortgage-market liquidity provided during the quarter
- 201,000: Home purchases supported, including nearly 110,000 first-time buyers
- $111.2 billion: Single-family acquisition volume, up from $98.7 billion in the first quarter
- 0.58 percent: Single-family serious delinquency rate, unchanged from the previous quarter
- $485 million: Provision for credit losses, up from $277 million in the first quarter
The increase in purchase activity came despite mortgage rates remaining higher than Fannie Mae had anticipated earlier this year. In May, the company’s economists projected that 30-year rates would average roughly 6.3 percent in 2026, but Freddie Mac’s weekly survey put the average at 6.58 percent as of July 23.
Credit performance in Fannie Mae’s single-family business was largely unchanged from the previous quarter. The serious delinquency rate remained at 0.58 percent, while the weighted-average credit score at origination for loans in its conventional guaranty book stood at 753.
Fannie Mae nevertheless increased the amount it set aside for potential credit losses. Its companywide provision for credit losses rose to $485 million from $277 million during the first quarter, including a single-family provision of $226 million and a multifamily provision of $259 million.
The company attributed the multifamily provision partly to weaker property valuations, slower growth in net operating income and loans that became seriously delinquent. Multifamily acquisition volume declined to $14.2 billion from $17.1 billion, although the serious delinquency rate fell to 0.60 percent from 0.78 percent.
