Q4 2024 Federal National Mortgage Association Earnings Call Transcript
Key Points
- Federal National Mortgage Association Fannie Mae (FNMA) reported a net income of $17 billion in 2024, marking its 28th consecutive quarter of positive earnings.
- The company provided $381 billion of liquidity to the single-family and multifamily markets, assisting approximately 1.4 million households in buying, refinancing, or renting a home.
- Single-family originations increased to an estimated $1.7 trillion in 2024, up from $1.5 trillion in 2023.
- Multifamily mortgage market originations rose to an estimated $295 billion in 2024, up from $246 billion in 2023.
- FNMA has built nearly $37 billion of regulatory capital over the past two years, enhancing its financial stability.
- Net income decreased by $430 million from 2023, primarily due to a lower benefit for credit losses.
- Housing affordability remains a significant challenge, with only one in five consumers believing it is a good time to buy a home.
- The multifamily provision for credit losses increased by $257 million due to declining property values, rising delinquencies, and suspected fraud in lending transactions.
- The multifamily serious delinquency rate increased to 57 basis points at the end of 2024, up from 46 basis points at the end of 2023.
- FNMA faces a $146 billion capital shortfall to its minimum total risk-based capital requirement, largely due to the senior preferred stock not qualifying as regulatory capital.
Good day, and welcome to the Fannie Mae fourth-quarter and full year 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.
Hello, and thank you all for joining today's conference call to discuss Fannie Mae's fourth quarter and full year 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 2024 Form 10-K filed today describe factors that may lead to different results.
A recording of this call may be posted on the company's website. We ask that you do not
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