Q3 2024 Federal National Mortgage Association Earnings Call Transcript
Key Points
- Federal National Mortgage Association Fannie Mae (FNMA) reported a net income of $4 billion for the third quarter, contributing to a net worth increase to $90.5 billion.
- The company provided $106 billion of liquidity to the single-family and multifamily markets, assisting 383,000 households in buying, refinancing, or renting homes.
- FNMA's efforts included supporting 103,000 units of multifamily rental housing, primarily affordable for households earning at or below 120% of area median income.
- The company is actively working to remove obstacles for renters and homebuyers, such as limited credit history and high upfront costs, by using rent payment data to support better outcomes.
- FNMA is exploring new ways to support its mission in the capital markets, including single-family and multifamily social bonds aimed at affordable housing and underserved markets.
- Net income for the third quarter decreased by $440 million compared to the second quarter.
- The benefit for credit losses was down by $273 million, with a $424 million provision for credit losses in the multifamily sector.
- Multifamily property values have declined by 19.5% from their peak in the second quarter of 2022, returning to 2021 levels.
- The single-family serious delinquency rate increased to 52 basis points, with expectations of further increases due to economic conditions and natural disasters.
- Multifamily serious delinquency rate rose to 56 basis points, driven by a portfolio of arm loans that became seriously delinquent.
Good day and welcome to the Fannie Mae third quarter, 2024 financial results conference call at this time, I will now turn it over to your host, Pete Bakel,Fannie Mae's Director of External Communications.
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Hello and thank you all for joining today's conference call to discuss Fannie Mae's third quarter, 2024 financial results. Please note this call includes forward-looking statements including statements about Fannie Mae's expectations related to economic and housing market conditions, the future performance of the company's Book of Business and the company's business plans and their impact future events may turn out to be very different from these statements, the risk factors and forward-looking statements, sections in the company's third quarter, 2024 form 10-Q filed today and in the company's 2023 form 10-K filed on February 15th, 2024. Describe factors that may lead to different results.
A recording of this call may be
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