Q1 2025 Federal National Mortgage Association Earnings Call Transcript
Key Points
- Federal National Mortgage Association Fannie Mae (FNMA) reported a net income of $3.7 billion for the first quarter of 2025, marking its 29th consecutive quarter of positive earnings.
- The company provided $76 billion of liquidity to support Single-Family and Multifamily mortgage lending, aiding 287,000 households in buying, refinancing, or renting a home.
- Single-Family mortgage market originations increased by 16% from the first quarter of 2024, reaching an estimated $378 billion.
- The credit profile of the Single-Family book remains strong with a weighted average loan-to-value ratio of 50% and a credit score at origination of 753.
- Federal National Mortgage Association Fannie Mae (FNMA) has built $41 billion of regulatory capital since the end of 2022, strengthening its financial position.
- The 30-year fixed rate mortgage rate increased to an average of 6.8% during the quarter, posing affordability challenges.
- High home prices continue to be a significant barrier for buyers, with national home prices increasing by 5.2% over the past year.
- The Multifamily serious delinquency rate increased to 63 basis points at the end of March, up from 57 basis points at the end of December 2024.
- Federal National Mortgage Association Fannie Mae (FNMA) recorded a $24 million provision for credit losses, a shift from the $180 million benefit recorded in the first quarter of 2024.
- The company faces a $140 billion capital shortfall to its minimum total risk-based capital requirement, primarily due to the senior preferred stock not qualifying as regulatory capital.
Good day, and welcome to the Fannie Mae first-quarter 2025 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 first-quarter 2025 financial results. Please note this call includes forward-looking statements, including statements about Fannie Mae's and the Director of the US Federal Housing, FHFA's expectations related to economic and housing market conditions, the future performance of the company's book of business, the company's future financial performance, and the company's business plans and their impact.
Future events may turn out to be very different from these statements. The forward-looking statements section in the company's first-quarter 2025 Form 10-Q filed today and in the company's 2024 Form 10-K filed on February 14, 2025, describe factors that may lead to different
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