Fannie Mae Reports $4.0 Billion in Q2 Net Income

On Thursday, Fannie Mae reported net income of $4.0 billion in Q2, up from $3.7 billion in Q1. The company’s net worth increased to $116.5 billion as of June 30.

Net revenues rose to $7.6 billion from $7.3 billion in Q1. Fannie Mae attributed the increase in net income to higher net interest income from its portfolios, higher net deferred guaranty fees, investment gains, and lower non-interest expenses.

Those gains were partly offset by a higher provision for credit losses and a shift to fair value losses.

Commenting on the results, US Federal Housing Director and Fannie Mae Board Chairman William J. Pulte said:

“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. This shows the company’s continued stability and growth, all while reaching $3 billion in estimated homeowner savings since 2018 through innovative appraisal alternatives.”

Fannie Mae Acting Chief Executive Officer and Chief Operating Officer Peter Akwaboah added:

“The strength of our core guaranty business and financial discipline enabled us to deliver another quarter of solid earnings and real impact. 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. Our financial performance advances our mission to promote a stable, accessible, and affordable housing market across America.”