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Fannie Mae Reports $4 Billion Q2 Profit as Net Worth Rises to $116.5 Billion

Revenue from portfolio interest and deferred guaranty fees lifted earnings as rising multifamily loss reserves widened a capital gap that clouds any near-term exit from conservatorship

Overview

  • Fannie reported $4.0 billion in net income for the second quarter and net revenue of $7.6 billion, driven by higher net interest income and increased deferred guaranty-fee income.
  • The company raised its provision for credit losses to $485 million from $277 million, including a $259 million charge in multifamily lending, and warned that multifamily strains could produce more delinquencies.
  • Single-family acquisitions reached about $111 billion in the quarter, the highest volume since the third quarter of 2022, powered by purchase loans even as refinance activity slowed.
  • Fannie provided roughly $125 billion in mortgage market liquidity during the quarter, supporting about 417,000 home purchases, refinances and rental units and helping more than 21,000 homeowners avoid foreclosure.
  • Analysts say Fannie still faces an estimated $13.8 billion shortfall to adjusted capital requirements, and recent court rulings on legacy investor claims increase uncertainty over when private investors might reap benefits or when the company can leave conservatorship.