WASHINGTON — Fannie Mae reported second-quarter net income of $4 billion, a 20% increase from a year earlier, as the government-sponsored mortgage finance company continued to expand its capital base while supporting more than 400,000 home purchases, refinancings and rental housing transactions.
According to Fannie Mae, net income rose from $3.7 billion in the first quarter to $4 billion in the second quarter, while net worth increased to $116.5 billion as of June 30.
The company reported net revenue of $7.6 billion during the quarter, up from $7.3 billion in the first three months of the year.
Reasons for Earnings
Fannie Mae attributed the earnings increase primarily to:
- Higher net interest income from its investment portfolios.
- Increased deferred guaranty fee income.
- A shift from investment losses to investment gains.
- Lower non-interest expenses.
Those gains were partially offset by:
- A higher provision for credit losses.
- A shift to fair-value losses.
William J. Pulte, director of U.S. Federal Housing and chairman of Fannie Mae’s board of directors, said the company’s results reflect continued financial strength.
“Fannie Mae’s strong second quarter earnings of $4 billion are up 20% year-over-year, growing its net worth to more than $116 billion,” Pulte said in a statement. “This shows the company’s continued stability and growth, all while reaching $3 billion in estimated homeowner savings since 2018 through innovative appraisal alternatives.”
‘Support for Housing’
Acting Chief Executive Officer and Chief Operating Officer Peter Akwaboah said Fannie Mae continued to provide significant support to the nation’s housing market during the quarter.
“The strength of our core guaranty business and financial discipline enabled us to deliver another quarter of solid earnings and real impact,” Akwaboah said in a statement. “We provided $125 billion in mortgage market liquidity, supporting 417,000 home purchases, refinances, and rental units, including helping almost 110,000 borrowers buy their first home.”
