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

 202-752-2034 

Date: May 2, 2023 

Fannie Mae Reports Net Income of $3.8 Billion for First Quarter 2023

• $3.8 billion net income for the first quarter 2023, with net worth reaching 

$64.0 billion as of March 31, 2023

“We delivered strong first quarter 

results in a volatile market and 

remain committed to being a source 

of stability for the housing finance 

system throughout all economic 

cycles. We are able to do so 

because of the changes we've made 

to improve the resilience of our 

business, our focus on risk 

management, and strong liquidity. 

This allows us to continue to 

facilitate affordable, equitable, and 

sustainable access to 

homeownership and rental housing.”

Priscilla Almodovar, Chief Executive 

Officer

• Net income increased $2.3 billion in the first quarter of 2023 compared with the 

fourth quarter of 2022, primarily driven by a $3.2 billion decrease in provision for 

credit losses

• $78 billion in liquidity provided to the mortgage market in the first quarter of 2023

• Acquired approximately 170,000 single-family purchase loans, of which more 

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

refinance loans during the first quarter of 2023

• Financed approximately 91,000 units of multifamily rental housing in the first 

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 1.0% on a national basis in the first quarter of 2023, compared 

with a 1.2% decline in the fourth quarter of 2022

• The U.S. weekly average 30-year fixed-rate mortgage rate decreased from 

6.42% as of the end of 2022 to 6.32% as of the end of the first quarter of 2023

Q1 2023 Key Results

$64.0 Billion Net Worth $78 Billion Supporting Housing Activity

Increase of $3.8 billion in the first quarter of 2023 SF Home Purchases SF Refinancings MF Rental Units

 $14.6B

$25.3B

$47.4B

$60.3B $64.0B

2019 2020 2021 2022 Q1 2023

$666B

$1.4T $1.4T

$684B

$78B

2019 2020 2021 2022 Q1 2023

$3.8 Billion Net Income for Q1 2023 Serious Delinquency Rates

Increase of $2.3 billion compared with fourth quarter 2022 Single-Family SDQ Rate Multifamily SDQ Rate

 $4.4B

$4.7B

$2.4B

$1.4B

$3.8B

Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023

1.01% 0.81% 0.69% 0.65% 0.59%

0.38% 0.34% 0.26% 0.24% 0.35%

Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023

First Quarter 2023 Results 1
Summary of Financial Results

(Dollars in millions) Q123 Q422 Variance

% 

Change Q122 Variance

% 

Change

Net interest income $ 6,786 $ 7,092 $ (306) (4) % $ 7,399 $ (613) (8) %

Fee and other income 63 43 20 47 % 83 (20) (24) %

Net revenues 6,849 7,135 (286) (4) % 7,482 (633) (8) %

Investment gains (losses), net (67) 26 (93) NM (102) 35 34 %

Fair value gains (losses), net 204 (17) 221 NM 480 (276) (58) %

Administrative expenses (868) (856) (12) (1) % (808) (60) (7) %

Provision for credit losses (132) (3,283) 3,151 96 % (240) 108 45 %

TCCA fees (855) (854) (1) — % (824) (31) (4) %

Credit enhancement expense(1) (341) (349) 8 2 % (278) (63) (23) %

Change in expected credit enhancement 

recoveries 120 424 (304) (72) % 60 60 100 %

Other expenses, net(2) (130) (306) 176 58 % (197) 67 34 %

Income before federal income taxes 4,780 1,920 2,860 149 % 5,573 (793) (14) %

Provision for federal income taxes (1,008) (494) (514) (104) % (1,165) 157 13 %

Net income $ 3,772 $ 1,426 $ 2,346 165 % $ 4,408 $ (636) (14) %

Total comprehensive income $ 3,772 $ 1,437 $ 2,335 162 % $ 4,401 $ (629) (14) %

Net worth $ 64,049 $ 60,277 $ 3,772 6 % $ 51,758 $ 12,291 24 %

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), 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 increased $2.3 billion in the first quarter of 2023, compared with the fourth quarter of 2022, primarily 

driven by a $3.2 billion decrease in provision for credit losses.

• Net interest income decreased $306 million in the first quarter of 2023, compared with the fourth quarter of 

2022, primarily driven by a decrease in amortization income partially offset by an increase in income from the 

other investments portfolio. Amortization income declined due to the continued higher interest-rate environment 

in the first quarter of 2023, which continued to slow refinancing activity driving lower loan prepayment volumes. 

Substantially all of the company’s single-family conventional guaranty book of business as of March 31, 2023 

had an interest rate below the current market rate, resulting in a low likelihood these loans would refinance at 

current rates. Higher income from the other investments portfolio was due to an increase in short-term yields.

• Provision for credit losses was $132 million in the first quarter of 2023, compared with $3.3 billion in the fourth 

quarter of 2022. The provision for credit losses for the first quarter of 2023 was driven by a multifamily 

provision, partially offset by a modest single-family credit benefit. 

• The multifamily provision was primarily due to declines in property values and continued uncertainty 

related to seniors housing loans, including uncertainty related to adjustable-rate loans, partially offset by a 

benefit from lower actual and projected interest rates. 

• The single-family credit benefit was primarily driven by improvements in actual and forecasted home 

prices, substantially offset by provision on newly acquired loans. 

The provision for credit losses for the fourth quarter of 2022 was driven by:

• A single-family provision primarily driven by decreases in forecasted home prices. 

• A multifamily provision primarily driven by an increase in expected credit losses on the company’s seniors 

housing portfolio, which has been disproportionately impacted by recent market conditions, as well as 

higher actual and projected interest rates.

First Quarter 2023 Results 2
Single-Family Business Financial Results

(Dollars in millions) Q123 Q422 Variance

% 

Change Q122 Variance

% 

Change

Net interest income $ 5,672 $ 5,990 $ (318) (5) % $ 6,255 $ (583) (9) %

Fee and other income 48 20 28 140 % 61 (13) (21) %

Net revenues 5,720 6,010 (290) (5) % 6,316 (596) (9) %

Investment gains (losses), net (71) 48 (119) NM (66) (5) (8) %

Fair value gains (losses), net 166 (15) 181 NM 527 (361) (69) %

Administrative expenses (720) (705) (15) (2) % (683) (37) (5) %

Benefit (provision) for credit losses 47 (2,192) 2,239 NM (270) 317 NM

TCCA fees (855) (854) (1) — % (824) (31) (4) %

Credit enhancement expense (287) (284) (3) (1) % (210) (77) (37) %

Change in expected credit enhancement 

recoveries 95 199 (104) (52) % 69 26 38 %

Other expenses, net (116) (225) 109 48 % (164) 48 29 %

Income before federal income taxes 3,979 1,982 1,997 101 % 4,695 (716) (15) %

Provision for federal income taxes (847) (504) (343) (68) % (986) 139 14 %

Net income $ 3,132 $ 1,478 $ 1,654 112 % $ 3,709 $ (577) (16) %

Average charged guaranty fee on new 

conventional acquisitions, net of TCCA 

fees*

51.6 bps 49.3 bps 2.3 bps 5 % 47.9 bps 3.7 bps 8 %

Average charged guaranty fee on 

conventional guaranty book of business, 

net of TCCA fees*

46.6 bps 46.5 bps 0.1 bps — % 46.0 bps 0.6 bps 1 %

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 $67.5 billion in the first quarter of 2023, a decrease of 21%

compared with $85.3 billion in the fourth quarter of 2022. Purchase acquisition volume, of which more than 45%

was for first-time homebuyers, decreased to $56.5 billion in the first quarter of 2023 from $70.8 billion in the 

fourth quarter of 2022. Refinance acquisition volume was $11.0 billion in the first quarter of 2023, a decline from 

$14.5 billion in the fourth quarter of 2022, due to the continued higher mortgage interest-rate environment. Over 

90% of the company’s single-family conventional guaranty book of business as of March 31, 2023 had an 

interest rate below 5.50%, more than 80 basis points below the average interest rate for a single-family 30-year 

fixed-rate mortgage as of that date, resulting in a low likelihood these loans would refinance at current rates. 

• Average single-family conventional guaranty book of business in the first quarter of 2023 declined by 

$322 million from the fourth quarter of 2022 driven by acquisition volumes being lower than loan paydowns 

during the quarter. Overall credit characteristics of the single-family conventional guaranty book of business 

remained strong, with a weighted-average mark-to-market loan-to-value ratio of 53% and a weighted-average 

FICO credit score at origination of 752 as of March 31, 2023. 

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

relatively flat at 46.6 basis points as of March 31, 2023, compared with 46.5 basis points as of December 31, 

2022. Average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, 

increased 2.3 basis points to 51.6 basis points for the first quarter of 2023, compared with 49.3 basis points for 

the fourth quarter of 2022.

• Single-family serious delinquency rate decreased to 0.59% as of March 31, 2023, the lowest level since 2005, 

from 0.65% as of December 31, 2022. The company expects the credit performance of the loans in its singlefamily guaranty book of business will decline compared to recent performance, which could lead to an increase 

in the single-family serious delinquency rate later this year. Single-family seriously delinquent loans are loans 

that are 90 days or more past due or in the foreclosure process.

First Quarter 2023 Results 3
Multifamily Business Financial Results

(Dollars in millions) Q123 Q422 Variance

% 

Change Q122 Variance

% 

Change

Net interest income $ 1,114 $ 1,102 $ 12 1 % $ 1,144 $ (30) (3) %

Fee and other income 15 23 (8) (35) % 22 (7) (32) %

Net revenues 1,129 1,125 4 — % 1,166 (37) (3) %

Fair value gains (losses), net 38 (2) 40 NM (47) 85 NM

Administrative expenses (148) (151) 3 2 % (125) (23) (18) %

Benefit (provision) for credit losses (179) (1,091) 912 84 % 30 (209) NM

Credit enhancement expense (54) (65) 11 17 % (68) 14 21 %

Change in expected credit enhancement 

recoveries 25 225 (200) (89) % (9) 34 NM

Other expenses, net* (10) (103) 93 90 % (69) 59 86 %

Income (loss) before federal income 

taxes 801 (62) 863 NM 878 (77) (9) %

Benefit (provision) for federal income taxes (161) 10 (171) NM (179) 18 10 %

Net income (loss) $ 640 $ (52) $ 692 NM $ 699 $ (59) (8) %

Average charged guaranty fee rate on 

multifamily guaranty book of business, at 

period end

78.1 bps 78.5 bps (0.4) bps (1) % 79.3 bps (1.2) bps (2) %

NM - Not meaningful

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

Key Business Highlights 

• New multifamily business volume was $10.2 billion in the first quarter of 2023, compared with $18.6 billion in the 

fourth quarter of 2022. This decline in new multifamily business volume was driven by less overall market 

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

a minimum of 50% of loan purchases must be mission-driven, focused on specified affordable and underserved 

market segments.

• The multifamily guaranty book of business grew by approximately 1% in the first quarter of 2023 to 

$445.4 billion. The average charged guaranty fee on the multifamily book declined slightly to 78.1 basis points

as of March 31, 2023, compared with 78.5 basis points as of December 31, 2022.

• The multifamily serious delinquency rate increased to 0.35% as of March 31, 2023, compared with 0.24% as of 

December 31, 2022, largely driven by a seniors housing portfolio. Multifamily seriously delinquent loans are 

loans that are 60 days or more past due.

• The credit profile of Fannie Mae’s multifamily guaranty book of business, as a whole, is strong. However, the 

company’s seniors housing loans, especially those that are adjustable-rate mortgages, remain stressed. 

Approximately 38% of the $16.5 billion seniors housing loans in the company’s multifamily guaranty book of 

business as of March 31, 2023 were adjustable-rate mortgages, compared with 11% for the entire multifamily 

guaranty book. In a rising mortgage interest rate environment, multifamily borrowers with adjustable-rate 

mortgages will have higher monthly payments, which may lower their debt service coverage ratios. 

First Quarter 2023 Results 4
Additional Matters

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

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

investors and interested parties should read the company’s First 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 First Quarter 2023 Form 10-Q. Additional information about the company’s financial and credit performance is 

contained in Fannie Mae’s “Q1 2023 Financial Supplement” at www.fanniemae.com.

# # #

In this release, the company has presented forward-looking statements regarding the credit performance of the 

loans in the company’s guaranty book of business, economic and housing market conditions and their impact, as 

well as the company’s business plans and their impact. Actual outcomes could be materially different from what is 

set forth in these forward-looking statements due to a variety of factors, including those described in “ForwardLooking Statements” in the company’s First Quarter 2023 Form 10-Q and in “Forward-Looking Statements” and 

“Risk Factors” in the company’s 2022 Form 10-K.

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.

First Quarter 2023 Results 5
ANNEX

FANNIE MAE

(In conservatorship)

 Condensed Consolidated Balance Sheets — (Unaudited)

(Dollars in millions)

As of

March 31, 

2023

December 31, 

2022

ASSETS

Cash and cash equivalents $ 60,330 $ 57,987 

Restricted cash and cash equivalents (includes $24,639 and $23,348, respectively, related to consolidated 

trusts) 30,507 29,854 

Securities purchased under agreements to resell (includes $5,500 and $3,475, respectively, related to 

consolidated trusts) 26,950 14,565 

Investments in securities, at fair value 51,089 50,825 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 512 2,033 

Loans held for investment, at amortized cost:

Of Fannie Mae 51,645 52,081 

Of consolidated trusts 4,069,513 4,071,669 

 Total loans held for investment (includes $3,599 and $3,645, respectively, at fair value) 4,121,158 4,123,750 

Allowance for loan losses (11,335) (11,347) 

Total loans held for investment, net of allowance 4,109,823 4,112,403 

Total mortgage loans 4,110,335 4,114,436 

Advances to lenders 2,748 1,502 

Deferred tax assets, net 12,615 12,911 

Accrued interest receivable, net (includes $9,236 and $9,241 related to consolidated trusts and net of 

allowance of $68 and $111, respectively) 9,780 9,821 

Other assets 13,106 13,387 

Total assets $ 4,317,460 $ 4,305,288 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $9,545 and $9,347, respectively, related to consolidated trusts) $ 10,182 $ 9,917 

Debt:

Of Fannie Mae (includes $1,132 and $1,161, respectively, at fair value) 139,164 134,168 

Of consolidated trusts (includes $15,972 and $16,260, respectively, at fair value) 4,091,602 4,087,720 

Other liabilities (includes $1,729 and $1,748, respectively, related to consolidated trusts) 12,463 13,206 

Total liabilities 4,253,411 4,245,011 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $181,776 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 (69,239) (73,011) 

Accumulated other comprehensive income 35 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) 64,049 60,277 

Total liabilities and equity $ 4,317,460 $ 4,305,288 

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

First Quarter 2023 Results 6
FANNIE MAE

(In conservatorship)

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

(Dollars in millions, except per share amounts)

M

N

S

For the Three Months Ended 

March 31, 2

3 2023 2022

Interest income:

Investments in securities $ 981 $ 166 

Mortgage loans 32,137 27,142 

Other 452 32 

Total interest income 33,570 27,340 

Interest expense:

Short-term debt (119) (1) 

Long-term debt (26,665) (19,940) 

Total interest expense (26,784) (19,941) 

Net interest income 6,786 7,399 

Provision for credit losses (132) (240) 

Net interest income after provision for credit losses 6,654 7,159 

Investment losses, net (67) (102) 

Fair value gains, net 204 480 

Fee and other income 63 83 

Non-interest income 200 461 

Administrative expenses:

Salaries and employee benefits (480) (407) 

Professional services (184) (209) 

Other administrative expenses (204) (192) 

Total administrative expenses (868) (808) 

TCCA fees (855) (824) 

Credit enhancement expense (341) (278) 

Change in expected credit enhancement recoveries 120 60 

Other expenses, net (130) (197) 

Total expenses (2,074) (2,047) 

Income before federal income taxes 4,780 5,573 

Provision for federal income taxes (1,008) (1,165) 

Net income 3,772 4,408 

Other comprehensive loss — (7) 

Total comprehensive income $ 3,772 $ 4,401 

Net income $ 3,772 $ 4,408 

Dividends distributed or amounts attributable to senior preferred stock (3,772) (4,401) 

Net income attributable to common stockholders $ — $ 7 

Earnings per share:

Basic $ 0.00 $ 0.00 

Diluted 0.00 0.00 

Weighted-average common shares outstanding:

Basic 5,867 5,867 

Diluted 5,867 5,893 

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

First Quarter 2023 Results 7