Contact: Pete Bakel Resource Center: 1-800-232-6643

 202-752-2034 

Date: October 31, 2023 

Fannie Mae Reports Net Income of $4.7 Billion for Third Quarter 2023

• $4.7 billion net income for the third quarter of 2023, with net worth reaching $73.7 

billion as of September 30, 2023

“The third quarter remained 

challenging for housing – with 

higher mortgage rates, high home 

prices, and a limited inventory of 

homes for sale. Renters, too, 

continued to face all-time high 

rents. Against this economic 

backdrop, Fannie Mae delivered 

strong third quarter results and 

remained a reliable source of 

liquidity and stability for America’s 

housing market. This quarter, we 

helped 428,000 households 

purchase, refinance, or rent a 

home, many of whom are low- to 

moderate-income borrowers or 

renters.”

Priscilla Almodovar, Chief 

Executive Officer

• Net income decreased $295 million in the third quarter of 2023 compared with the 

second quarter of 2023, primarily driven by a decrease in benefit for credit losses, 

partially offset by an increase in fair value gains

• $106 billion in liquidity provided to the mortgage market in the third quarter of 2023

• Acquired approximately 224,000 single-family purchase loans, of which more than 

45% were for first-time homebuyers, and approximately 45,000 single-family 

refinance loans during the third quarter of 2023

• Financed approximately 159,000 units of multifamily rental housing in the third 

quarter of 2023, a significant majority of which were affordable to households 

earning at or below 120% of area median income, providing support for both 

workforce and affordable housing

• Home prices grew 1.7% on a national basis in the third quarter of 2023, compared 

with a 3.8% increase in the second quarter of 2023

• The U.S. weekly average 30-year fixed-rate mortgage rate increased from 6.71%

as of the end of the second quarter of 2023 to 7.31% as of the end of the third 

quarter of 2023

Q3 2023 Key Results

$73.7 Billion Net Worth $288 Billion Supporting Housing Activity

Increase of $4.7 billion in the third quarter of 2023 SF Home Purchases SF Refinancings MF Rental Units

 

$14.6B

$25.3B

$47.4B

$60.3B

$73.7B

2019 2020 2021 2022 Q3 YTD 

2023

$666B

$1.4T $1.4T

$684B

$288B

2019 2020 2021 2022 Q3 YTD 

2023

$4.7 Billion Net Income for Q3 2023 Serious Delinquency Rates

Decrease of $295 million compared with second quarter 2023 Single-Family SDQ Rate Multifamily SDQ Rate

 

$2.4B

$1.4B

$3.8B

$5.0B $4.7B

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

0.69% 0.65% 0.59% 0.55% 0.54%

0.26% 0.24% 0.35% 0.37%

0.54%

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

Third Quarter 2023 Results 1
Summary of Financial Results

(Dollars in millions) Q323 Q223 Variance

% 

Change Q322 Variance

% 

Change

Net interest income $ 7,220 $ 7,035 $ 185 3 % $ 7,124 $ 96 1 %

Fee and other income 76 70 6 9 % 105 (29) (28) %

Net revenues 7,296 7,105 191 3 % 7,229 67 1 %

Investment gains (losses), net 8 25 (17) (68) % (172) 180 NM

Fair value gains, net 795 404 391 97 % 292 503 172 %

Administrative expenses (897) (864) (33) (4) % (870) (27) (3) %

Benefit (provision) for credit losses 652 1,266 (614) (48) % (2,536) 3,188 NM

TCCA fees (860) (856) (4) — % (850) (10) (1) %

Credit enhancement expense(1) (390) (384) (6) (2) % (364) (26) (7) %

Change in expected credit enhancement 

recoveries (128) (160) 32 20 % 290 (418) NM

Other expenses, net(2) (535) (257) (278) (108) % (154) (381) NM

Income before federal income taxes 5,941 6,279 (338) (5) % 2,865 3,076 107 %

Provision for federal income taxes (1,242) (1,285) 43 3 % (429) (813) (190) %

Net income $ 4,699 $ 4,994 $ (295) (6) % $ 2,436 $ 2,263 93 %

Total comprehensive income $ 4,681 $ 4,995 $ (314) (6) % $ 2,433 $ 2,248 92 %

Net worth $ 73,725 $ 69,044 $ 4,681 7 % $ 58,840 $ 14,885 25 %

NM - Not meaningful

(1) Consists of costs associated with freestanding credit enhancements, which primarily include Connecticut Avenue Securities®

 and Credit 

Insurance Risk TransferTM programs, enterprise-paid mortgage insurance, and certain lender risk-sharing programs.

(2) Consists of debt extinguishment gains (losses), expenses associated with legal claims, foreclosed property income (expense), gains (losses) 

from partnership investments, housing trust fund expenses, loan subservicing costs, and servicer fees paid in connection with certain loss 

mitigation activities.

Financial Highlights 

Net income decreased $295 million in the third quarter of 2023, compared with the second quarter of 2023, 

primarily driven by a decrease in benefit for credit losses, partially offset by an increase in fair value gains.

• Net interest income remained strong in the third quarter of 2023 primarily driven by base guaranty fee income.

• Benefit for credit losses was $652 million in the third quarter of 2023, compared with $1.3 billion in the second 

quarter of 2023. The benefit for credit losses for the third quarter of 2023 was primarily driven by increases in 

actual and forecasted single-family home prices. This was partially offset by write-offs relating to the 

redesignation of certain single-family loans from held for investment to held for sale.

• Fair value gains were $795 million in the third quarter of 2023, compared with $404 million in the second 

quarter of 2023. Fair value gains in the third quarter of 2023 were primarily due to increases in interest rates 

during the period.

• Other expenses, net includes $491 million of expense in the third quarter of 2023 relating to a jury verdict and 

an award of prejudgment interest for Fannie Mae preferred shareholders.

Third Quarter 2023 Results 2
Single-Family Business Financial Results

(Dollars in millions) Q323 Q223 Variance

% 

Change Q322 Variance

% 

Change

Net interest income $ 6,074 $ 5,917 $ 157 3 % $ 5,918 $ 156 3 %

Fee and other income 56 52 4 8 % 83 (27) (33) %

Net revenues 6,130 5,969 161 3 % 6,001 129 2 %

Investment gains (losses), net 9 27 (18) (67) % (178) 187 NM

Fair value gains, net 742 460 282 61 % 309 433 140 %

Administrative expenses (745) (718) (27) (4) % (730) (15) (2) %

Benefit (provision) for credit losses 736 1,418 (682) (48) % (2,361) 3,097 NM

TCCA fees (860) (856) (4) — % (850) (10) (1) %

Credit enhancement expense (335) (327) (8) (2) % (298) (37) (12) %

Change in expected credit enhancement 

recoveries (170) (223) 53 24 % 245 (415) NM

Other expenses, net (411) (203) (208) (102) % (165) (246) (149) %

Income before federal income taxes 5,096 5,547 (451) (8) % 1,973 3,123 158 %

Provision for federal income taxes (1,071) (1,153) 82 7 % (276) (795) NM

Net income $ 4,025 $ 4,394 $ (369) (8) % $ 1,697 $ 2,328 137 %

Average charged guaranty fee on new 

conventional acquisitions, net of TCCA 

fees*

54.3 bps 52.2 bps 2.1 bps 4 % 52.1 bps 2.2 bps 4 %

Average charged guaranty fee on 

conventional guaranty book of business, 

net of TCCA fees*

47.0 bps 46.8 bps 0.2 bps — % 46.3 bps 0.7 bps 2 %

NM - Not meaningful

* In Q4 2022, the company enhanced the method it uses to estimate average loan life at acquisition. Charged fees reported for prior periods 

have been updated in this release to reflect this updated methodology.

Key Business Highlights 

• Single-family conventional acquisition volume was $89.2 billion in the third quarter of 2023, consistent with the 

second quarter of 2023. Purchase acquisition volume, of which more than 45% was for first-time homebuyers, 

increased to $78.2 billion in the third quarter of 2023 from $76.4 billion in the second quarter of 2023. Refinance 

acquisition volume was $11.0 billion in the third quarter of 2023, a decrease from $12.8 billion in the second 

quarter of 2023. 

• Average single-family conventional guaranty book of business in the third quarter of 2023 increased by $5.5 

billion from the second quarter of 2023 driven by an increase in the average loan size of the book. Overall credit 

characteristics of the single-family conventional guaranty book of business remained strong, with a weightedaverage mark-to-market loan-to-value ratio of 51% and a weighted-average FICO credit score at origination of 

753 as of September 30, 2023. 

• Average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book remained 

relatively flat at 47.0 basis points as of September 30, 2023, compared with 46.8 basis points as of June 30, 

2023. Average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, 

increased to 54.3 basis points for the third quarter of 2023, compared with 52.2 basis points for the second 

quarter of 2023.

• Single-family serious delinquency rate decreased to 0.54% as of September 30, 2023 from 0.55% as of June 

30, 2023. Single-family seriously delinquent loans are loans that are 90 days or more past due or in the 

foreclosure process.

Third Quarter 2023 Results 3
Multifamily Business Financial Results

(Dollars in millions) Q323 Q223 Variance

% 

Change Q322 Variance

% 

Change

Net interest income $ 1,146 $ 1,118 $ 28 3 % $ 1,206 $ (60) (5) %

Fee and other income 20 18 2 11 % 22 (2) (9) %

Net revenues 1,166 1,136 30 3 % 1,228 (62) (5) %

Fair value gains (losses), net 53 (56) 109 NM (17) 70 NM

Administrative expenses (152) (146) (6) (4) % (140) (12) (9) %

Provision for credit losses (84) (152) 68 45 % (175) 91 52 %

Credit enhancement expense (55) (57) 2 4 % (66) 11 17 %

Change in expected credit enhancement 

recoveries 42 63 (21) (33) % 45 (3) (7) %

Other income (expenses), net* (125) (56) (69) (123) % 17 (142) NM

Income before federal income taxes 845 732 113 15 % 892 (47) (5) %

Provision for federal income taxes (171) (132) (39) (30) % (153) (18) (12) %

Net income $ 674 $ 600 $ 74 12 % $ 739 $ (65) (9) %

Average charged guaranty fee rate on 

multifamily guaranty book of business, at 

period end

76.8 bps 77.4 bps (0.6) bps (1) % 79.0 bps (2.2) bps (3) %

NM - Not meaningful

* Includes investment gains or losses and other income or expenses.

Key Business Highlights 

• New multifamily business volume was $16.4 billion in the third quarter of 2023, compared with $15.1 billion in 

the second quarter of 2023. During the first nine months of 2023, new multifamily business volume was

$41.7 billion. FHFA has capped the company’s multifamily loan purchases for 2023 at $75 billion. FHFA requires 

that a minimum of 50% of the company’s multifamily loan purchases must be mission-driven, focused on 

specified affordable and underserved market segments.

• The multifamily guaranty book of business grew by approximately 2% in the third quarter of 2023 to 

$464.7 billion. The average charged guaranty fee on the multifamily book declined slightly to 76.8 basis points 

as of September 30, 2023, compared with 77.4 basis points as of June 30, 2023.

• The multifamily serious delinquency rate increased to 0.54% as of September 30, 2023, compared with 0.37%

as of June 30, 2023, largely driven by seniors housing portfolios. Multifamily seriously delinquent loans are 

loans that are 60 days or more past due.

Third Quarter 2023 Results 4
Additional Matters

Fannie Mae’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations 

and Comprehensive Income for the third quarter of 2023 are available in the accompanying Annex; however, 

investors and interested parties should read the company’s Third Quarter 2023 Form 10-Q, which was filed today 

with the Securities and Exchange Commission and is available on Fannie Mae’s website, www.fanniemae.com. The 

company provides further discussion of its financial results and condition, credit performance, and other matters in 

its Third Quarter 2023 Form 10-Q. Additional information about the company’s financial and credit performance is 

contained in Fannie Mae’s “Q3 2023 Financial Supplement” at www.fanniemae.com.

# # #

Fannie Mae provides website addresses in its news releases solely for readers’ information. Other content or 

information appearing on these websites is not part of this release. 

Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing 

for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation 

to make homebuying and renting easier, fairer, and more accessible. To learn more, visit fanniemae.com.

Third Quarter 2023 Results 5
ANNEX

FANNIE MAE

(In conservatorship)

 Condensed Consolidated Balance Sheets — (Unaudited)

(Dollars in millions)

As of

September 30, 

2023

December 31, 

2022

ASSETS

Cash and cash equivalents $ 48,604 $ 57,987 

Restricted cash and cash equivalents (includes $26,993 and $23,348, respectively, related to consolidated 

trusts) 33,195 29,854 

Securities purchased under agreements to resell (includes $900 and $3,475, respectively, related to 

consolidated trusts) 22,850 14,565 

Investments in securities, at fair value 51,872 50,825 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 2,587 2,033 

Loans held for investment, at amortized cost:

Of Fannie Mae 49,767 52,081 

Of consolidated trusts 4,090,205 4,071,669 

 Total loans held for investment (includes $3,207 and $3,645, respectively, at fair value) 4,139,972 4,123,750 

Allowance for loan losses (8,671) (11,347) 

Total loans held for investment, net of allowance 4,131,301 4,112,403 

Total mortgage loans 4,133,888 4,114,436 

Advances to lenders 3,384 1,502 

Deferred tax assets, net 11,885 12,911 

Accrued interest receivable, net (includes $9,861 and $9,241 related to consolidated trusts and net of 

allowance of $33 and $111, respectively) 10,462 9,821 

Other assets 13,240 13,387 

Total assets $ 4,329,380 $ 4,305,288 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $9,998 and $9,347, respectively, related to consolidated trusts) $ 10,758 $ 9,917 

Debt:

Of Fannie Mae (includes $833 and $1,161, respectively, at fair value) 125,652 134,168 

Of consolidated trusts (includes $14,210 and $16,260, respectively, at fair value) 4,106,110 4,087,720 

Other liabilities (includes $1,715 and $1,748, respectively, related to consolidated trusts) 13,135 13,206 

Total liabilities 4,255,655 4,245,011 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $190,543 and $180,339, respectively) 120,836 120,836 

Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding 19,130 19,130 

Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 

1,158,087,567 shares outstanding 687 687 

Accumulated deficit (59,546) (73,011) 

Accumulated other comprehensive income 18 35 

Treasury stock, at cost, 150,675,136 shares (7,400) (7,400) 

Total stockholders’ equity (See Note 1: Senior Preferred Stock Purchase Agreement and Senior Preferred 

Stock for information on the related dividend obligation and liquidation preference) 73,725 60,277 

Total liabilities and equity $ 4,329,380 $ 4,305,288 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2023 Form 10-Q

Third Quarter 2023 Results 6
FANNIE MAE

(In conservatorship)

 Condensed Consolidated Statements of Operations and Comprehensive Income — (Unaudited)

(Dollars in millions, except per share amounts)

For the Three Months 

Ended September 30,

For the Nine Months 

Ended September 30,

2023 2022 2023 2022

Interest income:

Investments in securities $ 1,075 $ 525 $ 3,157 $ 1,009 

Mortgage loans 33,711 30,114 98,503 86,338 

Other 629 211 1,665 298 

Total interest income 35,415 30,850 103,325 87,645 

Interest expense:

Short-term debt (201) (17) (503) (23) 

Long-term debt (27,994) (23,709) (81,781) (65,291) 

Total interest expense (28,195) (23,726) (82,284) (65,314) 

Net interest income 7,220 7,124 21,041 22,331 

Benefit (provision) for credit losses 652 (2,536) 1,786 (2,994) 

Net interest income after benefit (provision) for credit losses 7,872 4,588 22,827 19,337 

Investment gains (losses), net 8 (172) (34) (323) 

Fair value gains, net 795 292 1,403 1,301 

Fee and other income 76 105 209 269 

Non-interest income 879 225 1,578 1,247 

Administrative expenses:

Salaries and employee benefits (477) (439) (1,424) (1,244) 

Professional services (211) (229) (587) (636) 

Other administrative expenses (209) (202) (618) (593) 

Total administrative expenses (897) (870) (2,629) (2,473) 

TCCA fees (860) (850) (2,571) (2,515) 

Credit enhancement expense (390) (364) (1,115) (974) 

Change in expected credit enhancement recoveries (128) 290 (168) 303 

Other expenses, net (535) (154) (922) (612) 

Total expenses (2,810) (1,948) (7,405) (6,271) 

Income before federal income taxes 5,941 2,865 17,000 14,313 

Provision for federal income taxes (1,242) (429) (3,535) (2,816) 

Net income 4,699 2,436 13,465 11,497 

Other comprehensive loss (18) (3) (17) (14) 

Total comprehensive income $ 4,681 $ 2,433 $ 13,448 $ 11,483 

Net income $ 4,699 $ 2,436 $ 13,465 $ 11,497 

Dividends distributed or amounts attributable to senior preferred stock (4,681) (2,433) (13,448) (11,483) 

Net income attributable to common stockholders $ 18 $ 3 $ 17 $ 14 

Earnings per share:

Basic $ 0.00 $ 0.00 $ 0.00 $ 0.00 

Diluted 0.00 0.00 0.00 0.00 

Weighted-average common shares outstanding:

Basic 5,867 5,867 5,867 5,867 

Diluted 5,893 5,893 5,893 5,893 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2023 Form 10-Q

Third Quarter 2023 Results 7