Federal National Mortgage ( (FNMA) ) has released its Q4 earnings. Here is a breakdown of the information Federal National Mortgage presented to its investors.
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Fannie Mae, officially known as the Federal National Mortgage Association, is a government-sponsored enterprise that plays a key role in the U.S. housing market by providing liquidity for home mortgages. The company is instrumental in advancing homeownership and affordable rental housing by enabling the 30-year fixed-rate mortgage and facilitating responsible innovation within the housing finance sector.
In its latest earnings report for 2024, Fannie Mae announced a net income of $17.0 billion for the year, with $4.1 billion earned in the fourth quarter alone. The company’s net worth rose to $94.7 billion by the end of the year, reflecting substantial growth and stability. Fannie Mae remains committed to its mission of supporting the housing market, having provided $381 billion in liquidity to assist 1.4 million households in buying, refinancing, or renting homes.
Fannie Mae’s financial performance was bolstered by strong guaranty fee income from its extensive book of business. The single-family segment generated $24.4 billion in revenue with a notable focus on first-time homebuyers, while the multifamily segment contributed $4.7 billion, supporting affordable housing initiatives. Despite a challenging interest rate environment, Fannie Mae maintained robust credit characteristics in its guaranty book, with low delinquency rates and substantial credit enhancements.
The company experienced a slight increase in its serious delinquency rates for both single-family and multifamily loans, yet it continued to manage credit risks effectively. Additionally, Fannie Mae’s efforts in supporting workforce and affordable housing were evident as it financed a significant volume of multifamily rental units affordable to lower-income households.
Looking ahead, Fannie Mae’s management remains optimistic about continuing its role in providing liquidity and stability to the housing market, while advancing equitable access to homeownership and rental housing. The company is poised to navigate the evolving financial landscape, leveraging its strong capital position and strategic initiatives.
