Contact: Pete Bakel Resource Center: 1-800-732-6643

 202-752-2034 

Date: February 12, 2021 

Fannie Mae Reports Net Income of $11.8 Billion for 2020 and 

$4.6 Billion for Fourth Quarter 2020

Provides Record Support for the Mortgage Market

• $11.8 billion annual net income and $4.6 billion fourth quarter 2020 net 

income, with net worth reaching $25.3 billion as of December 31, 2020

“2020 presented the nation with an historic test 

and Fannie Mae rose to the challenge, 

delivering a record $1.4 trillion in mortgage 

liquidity to meet home purchase, refinancing, 

and rental housing needs. I am proud of our 

work to help homeowners and renters through 

the pandemic, our commitment to advance 

opportunity and equity for families across the 

country, and our necessary focus on safety and 

soundness. We will work with our mortgage 

industry partners to provide home financing to 

creditworthy borrowers in all market conditions 

and support the responsible exit from 

conservatorship.”

Hugh R. Frater, Chief Executive Officer

• $4.4 billion shift from $3.5 billion of credit-related income in 2019 to $900 

million of credit-related expense in 2020 driven by the COVID-19 

pandemic and the associated economic downturn

• Senior preferred stock purchase agreement was amended in January 

2021, allowing Fannie Mae to continue to retain earnings to build capital

• $1.4 trillion in liquidity provided to Single-Family and Multifamily mortgage 

markets, highest on record

• 3.4 million refinanced loans helped homeowners take advantage of 

historically low interest rates

• 792 thousand units of rental housing financed, more than 90 percent

affordable to families earning at or below 120% of area median income

• 1.3 million single-family mortgage forbearance plans initiated in 2020 to 

help borrowers through the COVID-19 pandemic 

2020 Key Results

$25.3 Billion Net Worth $1.4 Trillion Supporting Housing Activity 

Increase of $10.7 billion in 2020 SF Home Purchases SF Refinancings MF Rental Units

 

$6.1B

$(3.7)B

$6.2B

$14.6B

$25.3B

2016 2017 2018 2019 2020

$637B $570B $512B $666B

$1.4T

2016 2017 2018 2019 2020

$4.6 Billion Net Income Single-Family SDQ Rate

Increase of $0.4 billion compared to third quarter 2020 SDQ Rate SDQ w/o forbearance

 

$4.4B

$0.5B

$2.5B

$4.2B $4.6B

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

0.66% 0.66%

2.65%

3.20%

2.87%

0.66% 0.66% 0.59% 0.65% 0.66%

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

Fourth Quarter and Full Year 2020 Results 1
Summary of Financial Results

(Dollars in millions) 2020 2019 Variance % Change 4Q20 3Q20 Variance % Change

Net interest income $ 24,866 $ 21,293 $ 3,573 17 % $ 7,086 $ 6,656 $ 430 6 %

Fee and other income 462 566 (104) (18) % 159 93 66 71 %

Net revenues 25,328 21,859 3,469 16 % 7,245 6,749 496 7 %

Investment gains, net 907 1,770 (863) (49) % 263 653 (390) (60) %

Fair value losses, net (2,501) (2,214) (287) 13 % (880) (327) (553) 169 %

Administrative expenses (3,068) (3,023) (45) 1 % (803) (762) (41) 5 %

Total credit-related income 

(expenses) (855) 3,496 (4,351) (124) % 1,400 430 970 226 %

Temporary Payroll Tax Cut 

Continuation Act of 2011 

(“TCCA”) fees (2,673) (2,432) (241) 10 % (697) (679) (18) 3 %

Other expenses, net (2,259) (1,879) (380) 20 % (819) (686) (133) 19 %

Income before federal 

income taxes 14,879 17,577 (2,698) (15) % 5,709 5,378 331 6 %

Provision for federal 

income taxes (3,074) (3,417) 343 (10) % (1,139) (1,149) 10 (1) %

Net income $ 11,805 $ 14,160 $ (2,355) (17) % $ 4,570 $ 4,229 $ 341 8 %

Total comprehensive 

income $ 11,790 $ 13,969 $ (2,179) (16) % $ 4,566 $ 4,216 $ 350 8 %

Net Worth $ 25,259 $ 14,608 $ 10,651 73 % $ 25,259 $ 20,693 $ 4,566 22 %

Financial Highlights 

• Net income decreased $2.4 billion in 2020 compared to 2019 driven primarily by a shift from credit-related income to creditrelated expenses and a reduction in investment gains driven by a decrease in the volume of reperforming loan sales. The 

decrease was partially offset by an increase in net revenues driven by record levels of refinancing activity in 2020. Singlefamily acquisition volume was $1.4 trillion, the highest level on record, of which single-family refinance volume was $948 

billion, the highest level since 2003. 

• Net interest income increased $3.6 billion in 2020 compared to 2019 driven primarily by an increase in net amortization 

income due to high levels of refinancing activity in 2020 as interest rates declined to historically low levels in 2020 and 

remained low throughout the majority of the year. 

• Credit-related expense was significantly impacted by the COVID-19 pandemic. Credit-related expense was $855 million in 

2020, compared with credit-related income of $3.5 billion in 2019. The shift to credit-related expense in 2020 was driven by 

the impact of COVID-19 and the associated economic downturn, as well as a significant reduction in the volume of 

redesignations of reperforming single-family mortgage loans from held-for-investment to held-for-sale in 2020. This impact 

was partially offset by higher actual and forecasted home prices and lower actual and projected interest rates in 2020

compared to 2019.

• Investment gains were $907 million in 2020, compared with $1.8 billion in 2019. The decrease in 2020 was driven by a 

reduction in the unpaid principal balance of single-family reperforming loan sales during the year.

Fourth Quarter and Full Year 2020 Results 2
Single-Family Business Financial Results

(Dollars in millions) 2020 2019 Variance % Change 4Q20 3Q20 Variance % Change

Net interest income $ 21,502 $ 18,013 $ 3,489 19 % $ 6,152 $ 5,870 $ 282 5 %

Fee and other income 368 453 (85) (19) % 130 73 57 78 %

Net revenues 21,870 18,466 3,404 18 % 6,282 5,943 339 6 %

Investment gains, net 728 1,589 (861) (54) % 201 583 (382) (66) %

Fair value losses, net (2,539) (2,216) (323) 15 % (805) (244) (561) 230 %

Administrative expenses (2,559) (2,565) 6 — % (671) (634) (37) 6 %

Total credit-related income 

(expenses) (232) 3,515 (3,747) (107) % 1,324 478 846 177 %

Temporary Payroll Tax Cut 

Continuation Act of 2011 

(“TCCA”) fees (2,673) (2,432) (241) 10 % (697) (679) (18) 3 %

Other expenses, net (2,107) (1,661) (446) 27 % (706) (629) (77) 12 %

Income before federal 

income taxes 12,488 14,696 (2,208) (15) % 4,928 4,818 110 2 %

Provision for federal 

income taxes (2,607) (2,859) 252 (9) % (984) (1,049) 65 (6) %

Net income $ 9,881 $ 11,837 $ (1,956) (17) % $ 3,944 $ 3,769 $ 175 5 %

Average charged 

guaranty fee on new 

conventional 

acquisitions, net of 

TCCA

46.4 bps 47.0 bps (0.6) bps (1) % 45.8 bps 44.9 bps 0.9 bps 2 %

Average charged 

guaranty fee on 

conventional guaranty 

book of business, net of 

TCCA

44.2 bps 43.4 bps 0.8 bps 2 % 44.5 bps 44.4 bps 0.1 bps — %

Key Business Highlights

• Single-family acquisition volume was $1.4 trillion in 2020, an increase of 135% compared with 2019, and the highest on 

record. The increase was driven by a $664 billion increase in refinance volume due to the historically low interest rate 

environment during the year, resulting in the highest level of refinance volumes since 2003. 38% of the company’s singlefamily conventional guaranty book of business as of December 31, 2020 was originated in 2020. 

• Average single-family conventional guaranty book of business during 2020 increased from 2019 by approximately $139 

billion. Credit characteristics of the single-family conventional guaranty book of business remained strong, with a weightedaverage mark-to-market loan-to-value ratio of 58% and weighted-average FICO credit score of 750.

• Average charged guaranty fee, net of Temporary Payroll Tax Cut Continuation Act of 2011 (TCCA) fees, on the single-family 

conventional guaranty book increased from 43.4 basis points as of December 31, 2019 to 44.2 basis points basis points as 

of December 31, 2020. Average charged guaranty fee on newly acquired conventional single-family loans, net of TCCA 

fees, decreased 0.6 basis points to 46.4 basis points in 2020 from 47.0 basis points in 2019, driven primarily by the stronger 

credit profile of the single-family loans acquired in 2020 compared with 2019.

• As of December 31, 2020, 3.0% of the single-family guaranty book of business based on loan count, or 524,555 loans, was 

in forbearance, the vast majority of which was related to the COVID-19 pandemic, compared to 4.1% as of September 30, 

2020. As of December 31, 2020, 12% of the loans in forbearance were still current.

• Single-family serious delinquency rate decreased to 2.87% as of December 31, 2020, from 3.20% as of September 30, 

2020, driven by loans exiting COVID-19-related forbearance arrangements. Single-family serious delinquency rate 

excluding loans in forbearance was 0.66% as of December 31, 2020 and 0.65% as of September 30, 2020. Single-family 

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

Fourth Quarter and Full Year 2020 Results 3
Multifamily Business Financial Results

(Dollars in millions) 2020 2019 Variance % Change 4Q20 3Q20 Variance % Change

Net interest income $ 3,364 $ 3,280 $ 84 3 % $ 934 $ 786 $ 148 19 %

Fee and other income 94 113 (19) (17) % 29 20 9 45 %

Net revenues 3,458 3,393 65 2 % 963 806 157 19 %

Fair value gain (losses), net 38 2 36 1,800 % (75) (83) 8 (10) %

Administrative expenses (509) (458) (51) 11 % (132) (128) (4) 3 %

Total credit-related income 

(expenses) (623) (19) (604) 3,179 % 76 (48) 124 (258) %

Credit enhancement 

expense (220) (207) (13) 6 % (56) (51) (5) 10 %

Change in expected credit 

enhancement recoveries 144 — 144 — % (51) — (51) — %

Other income, net 103 170 (67) (173) % 56 64 (8) (13) %

Income before federal 

income taxes 2,391 2,881 (490) (17) % 781 560 221 39 %

Provision for federal income 

taxes (467) (558) 91 (16) % (155) (100) (55) 55 %

Net income $ 1,924 $ 2,323 $ (399) (17) % $ 626 $ 460 $ 166 36 %

Average guaranty book 

of business Gfee 74.5 bps 71.8 bps 2.7 bps 4 % 74.5 bps 73.3 bps 1.2 bps 2 %

Key Business Highlights

• New Multifamily business volume was $76 billion in 2020, the highest annual volume on record. Multifamily remained under 

the $100 billion FHFA volume cap announced in September 2019 with $94 billion in volume for the five-quarter period 

ending December 31, 2020, while meeting its goal under FHFA’s volume cap for that period of acquiring at least 37.5% of its 

business volume in mission-driven housing, as defined by FHFA. 

• The multifamily guaranty book of business increased by $46 billion in 2020 to $385 billion. The average charged guaranty 

fee on the multifamily book increased from 71.8 basis points for the year ending December 31, 2019 to 74.5 basis points for 

the year ending December 31, 2020. This resulted in an increase in guaranty fee revenue, which drove the increase in net 

interest income, but was partially offset by a decrease in yield maintenance revenue year over year.

• As of December 31, 2020, based on unpaid principal balance, 1.4% of Fannie Mae’s multifamily guaranty book of business 

had received a forbearance plan, primarily as a result of the COVID-19 pandemic. More than half of those loans, measured 

by unpaid principal balance, were in a repayment plan and 0.4% of the book, or $1.7 billion, was still in active forbearance at 

year end. 

• The multifamily serious delinquency rate decreased to 0.98% as of December 31, 2020 from 1.12% as of September 30, 

2020. The multifamily serious delinquency rate excluding loans that have received a forbearance was 0.03% as of 

December 31, 2020. Multifamily seriously delinquent loans are loans that are 60 days or more past due.

Fourth Quarter and Full Year 2020 Results 4
Net Worth, Treasury Funding, and Senior Preferred Stock Dividends

The charts below show information about Fannie Mae’s net worth, the remaining amount of Treasury’s funding commitment to 

Fannie Mae, senior preferred stock dividends the company has paid Treasury, and funds the company has drawn from Treasury 

pursuant to its funding commitment.

Net Worth and Treasury Funding

Commitment

(Dollars in billions)

$25.3

$113.9

Net Worth

Remaining Treasury funding commitment

As of December 31, 2020

Dividend Payments and Draws

(Dollars in billions)

$181.4

$119.8

Cumulative dividend payments to Treasury1

Cumulative draws from Treasury2

As of December 31, 2020

(1) Aggregate amount of dividends the company has paid to Treasury on the senior preferred stock from 2008 through December 31, 2020. 

Under the terms of the senior preferred stock purchase agreement, dividend payments the company makes to Treasury do not offset its 

draws of funds from Treasury.

(2) Aggregate amount of funds the company has drawn from Treasury pursuant to the senior preferred stock purchase agreement from 2008 

through December 31, 2020.

Conservatorship and Regulatory Highlights

• In November 2020, FHFA adopted a final rule establishing a new “enterprise regulatory capital framework” for Fannie Mae. 

(See “Business—Legislation and Regulation—GSE Act and Other Legislative and Regulatory Matters—Capital” in the 

company’s 2020 Form 10-K.) 

• In January 2021, a number of significant changes were made to the terms of the senior preferred stock purchase agreement 

between the company and Treasury and the dividend and liquidation provisions of the senior preferred stock, including the 

following:

• The dividend provisions of the senior preferred stock were amended to permit Fannie Mae to retain increases in 

net worth until its net worth exceeds the amount of adjusted total capital necessary to meet the capital 

requirements and buffers under the enterprise regulatory capital framework. After the “capital reserve end date,” 

which is defined as the last day of the second consecutive fiscal quarter during which it has maintained capital 

equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital 

framework, the amount of quarterly dividends to Treasury will be the lesser of any quarterly increase in the 

company’s net worth and a 10% annual rate on the then-current liquidation preference of the senior preferred 

stock. 

• At the end of each fiscal quarter, through and including the capital reserve end date, the liquidation preference of 

the senior preferred stock will be increased by an amount equal to the increase in the company’s net worth, if any, 

during the immediately prior fiscal quarter.

• The company may issue and retain up to $70 billion in proceeds from the sale of common stock without Treasury’s 

prior consent, provided that (1) Treasury has already exercised the common stock warrant it holds in full, and (2) all 

currently pending significant litigation relating to Fannie Mae’s conservatorship and to an amendment to the senior 

preferred stock purchase agreement made in August 2012 has been resolved, which may require Treasury’s 

assent.

• FHFA may release the company from conservatorship without Treasury’s consent after (1) all currently pending 

significant litigation referred to above has been resolved, and (2) the company’s common equity tier 1 capital, 

together with any other common stock it may issue in a public offering, equals or exceeds 3% of its “adjusted total 

assets” under the enterprise regulatory capital framework. 

• New restrictive covenants were added that will impact Fannie Mae’s single-family and multifamily business 

activities.

Fourth Quarter and Full Year 2020 Results 5
Fannie Mae’s Consolidated Balance Sheets and Statements of Operations and Income for the full year of 2020 are available in 

the accompanying Annex; however, investors and interested parties should read the company’s 2020 Form 10-K, 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 2020 Form 

10-K. Additional information about the company’s financial and credit performance is contained in Fannie Mae’s “Q4 and Full 

Year 2020 Financial Supplement” at www.fanniemae.com.

# # #

In this release, the company has presented forward-looking statements regarding the company’s business plans and the impact 

of recent amendments to the company’s senior preferred stock purchase agreement with Treasury. 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 “Forward-Looking Statements” and “Risk Factors” in the company’s 2020 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 helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with 

lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home 

buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

Fourth Quarter and Full Year 2020 Results 6
ANNEX

FANNIE MAE

Consolidated Balance Sheets 

(Dollars in millions)

As of December 31,

2020 2019

ASSETS

Cash and cash equivalents $ 38,337 $ 21,184 

Restricted cash (includes $68,308 and $33,294, respectively, related to consolidated trusts) 77,286 40,223 

Federal funds sold and securities purchased under agreements to resell or similar arrangements 28,200 13,578 

Investments in securities:

Trading, at fair value (includes $6,544 and $3,037, respectively, pledged as collateral) 136,542 48,123 

Available-for-sale, at fair value (with an amortized cost of $1,606, net of allowance for credit losses of 

 $3 as of December 31, 2020) 1,697 2,404 

Total investments in securities 138,239 50,527 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 5,197 6,773 

Loans held for investment, at amortized cost:

Of Fannie Mae 112,726 94,911 

Of consolidated trusts 3,546,521 3,241,494 

Total loans held for investment (includes $6,490 and $7,825, respectively, at fair value) 3,659,247 3,336,405 

Allowance for loan losses (10,552) (9,016) 

Total loans held for investment, net of allowance 3,648,695 3,327,389 

Total mortgage loans 3,653,892 3,334,162 

Advances to lenders 10,449 6,453 

Deferred tax assets, net 12,947 11,910 

Accrued interest receivable, net (includes $9,635 and $8,172, respectively, related to consolidated trusts 

 and net of an allowance of $216 as of December 31, 2020) 9,937 8,604 

Acquired property, net 1,261 2,366 

Other assets 15,201 14,312 

Total assets $ 3,985,749 $ 3,503,319 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $8,955 and $9,361, respectively, related to consolidated trusts) $ 9,719 $ 10,228 

Debt:

Of Fannie Mae (includes $3,728 and $5,687, respectively, at fair value) 289,572 182,247 

Of consolidated trusts (includes $24,586 and $21,880, respectively, at fair value) 3,646,164 3,285,139 

Other liabilities (includes $1,523 and $376, respectively, related to consolidated trusts) 15,035 11,097 

Total liabilities 3,960,490 3,488,711 

Commitments and contingencies (Note 16) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $142,192 and $131,178, 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 (108,110) (118,776) 

Accumulated other comprehensive income 116 131 

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 and Warrant for information on the related dividend obligation and liquidation 

preference) 25,259 14,608 

Total liabilities and equity $ 3,985,749 $ 3,503,319 

See Notes to Consolidated Financial Statements in the 2020 Form 10-K

Fourth Quarter and Full Year 2020 Results 7
FANNIE MAE

(In conservatorship)

 Consolidated Statements of Operations and Comprehensive Income 

(Dollars in millions, except per share amounts)

For the Three Months 

ended December 31,

For the Year ended 

December 31,

2020 2019 2020 2019

Interest income:

Trading securities $ 162 $ 350 $ 874 $ 1,627 

Available-for-sale securities 22 37 98 175 

Mortgage loans 24,561 28,929 106,316 117,374 

Federal funds sold and securities purchased under agreements to resell or similar 

arrangements 11 145 146 843 

Other 43 43 135 163 

Total interest income 24,799 29,504 107,569 120,182 

Interest expense:

Short-term debt (7) (132) (182) (501) 

 Long-term debt (17,706) (23,450) (82,521) (98,388) 

Total interest expense (17,713) (23,582) (82,703) (98,889) 

Net interest income 7,086 5,922 24,866 21,293 

Benefit (provision) for credit losses 1,416 279 (678) 4,011 

Net interest income after benefit (provision) for credit losses 8,502 6,201 24,188 25,304 

Investment gains, net 263 923 907 1,770 

Fair value gain (losses), net (880) 84 (2,501) (2,214) 

Fee and other income 159 131 462 566 

Non-interest income (loss) (458) 1,138 (1,132) 122 

Administrative expenses:

Salaries and employee benefits (393) (363) (1,554) (1,486) 

Professional services (248) (268) (921) (967) 

Other administrative expenses (162) (155) (593) (570) 

Total administrative expenses (803) (786) (3,068) (3,023) 

Foreclosed property expense (16) (151) (177) (515) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (697) (626) (2,673) (2,432) 

Credit enhancement expense (300) (352) (1,361) (1,134) 

Change in expected credit enhancement recoveries (180) — 233 — 

Other expenses, net (339) (194) (1,131) (745) 

Total expenses (2,335) (2,109) (8,177) (7,849) 

Income before federal income taxes 5,709 5,230 14,879 17,577 

Provision for federal income taxes (1,139) (865) (3,074) (3,417) 

Net income 4,570 4,365 11,805 14,160 

Other comprehensive loss:

Changes in unrealized gains (losses) on available-for-sale securities, net of 

reclassification adjustments and taxes (19) (94) (23) (179) 

Other, net of taxes 15 (5) 8 (12) 

Total other comprehensive loss (4) (99) (15) (191) 

Total comprehensive income $ 4,566 $ 4,266 $ 11,790 $ 13,969 

Net income $ 4,570 $ 4,365 $ 11,805 $ 14,160 

Dividends distributed or amounts attributable to senior preferred stock (4,566) (4,266) (11,790) (13,969) 

Net income attributable to common stockholders $ 4 $ 99 $ 15 $ 191 

Earnings per share:

Basic $ 0.00 $ 0.02 $ 0.00 $ 0.03 

Diluted 0.00 0.02 0.00 0.03 

Weighted-average common shares outstanding:

Basic 5,867 5,762 5,867 5,762 

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

See Notes to Consolidated Financial Statements in the 2020 Form 10-K

Fourth Quarter and Full Year 2020 Results 8