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

 202-752-2034 

Date: April 30, 2021 

Fannie Mae Reports Net Income of $5.0 Billion for First Quarter 2021

• $5.0 billion net income for the first quarter of 2021 compared with $4.6 

billion for the fourth quarter of 2020

“COVID-19 continues to present challenges and 

opportunities for homeowners and renters. We 

had another quarter of near-record mortgage 

volumes as many took advantage of low rates to 

refinance or purchase a home. In addition, more 

than two-thirds of the 1.3 million homeowners 

with Fannie Mae loans who entered forbearance 

have since exited, even as we continue to help 

others find solutions. I’m proud of our steady 

performance and continuing focus on helping 

homeowners and renters through uncertain 

times.”

Hugh R. Frater, Chief Executive Officer

• Implemented hedge accounting in the first quarter of 2021, which 

improved first quarter pretax income by approximately $1.2 billion

• Net worth increased to $30.2 billion as of March 31, 2021

• $422 billion in liquidity provided to the Single-Family and Multifamily 

mortgage markets in the first quarter of 2021

• Acquired 340,000 home purchase loans and 1.1 million refinance loans 

during the quarter, which helped homeowners take advantage of low 

interest rates

• 217,000 units of rental housing financed, more than 90% affordable to 

families earning at or below 120% of area median income

• More than 1.3 million single-family forbearance plans initiated to help 

borrowers since the onset of the COVID-19 pandemic; as of March 31, 

2021, approximately 920,000 of these loans have exited forbearance, 

including approximately 337,000 through reinstatement and 

approximately 275,000 through the company’s payment deferral option 

Q1 2021 Key Results

$30.2 Billion Net Worth $422 Billion Supporting Housing Activity 

Increase of $5.0 billion in Q1 2021 SF Home Purchases SF Refinancings MF Rental Units

 

$(3.7)B

$6.2B

$14.6B

$25.3B $30.2B

2017 2018 2019 2020 Q1 2021

$570B $512B

$666B

$1.4T

$422B

2017 2018 2019 2020 Q1 2021

$5.0 Billion Net Income Single-Family SDQ Rate

Increase of $423 million compared with fourth quarter 2020 SDQ Rate SDQ Rate without Forbearances

 

$0.5B

$2.5B

$4.2B $4.6B $5.0B

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

0.66%

2.65%

3.20%

2.87% 2.58%

0.66% 0.59% 0.65% 0.66% 0.66%

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

First Quarter 2021 Results 1
Summary of Financial Results

(Dollars in millions) Q121 Q420 Variance % Change Q120 Variance % Change

Net interest income $ 6,742 $ 7,086 $ (344) (5) % 5,347 1,395 26 %

Fee and other income 87 159 (72) (45) % 120 (33) (28) %

Net revenues 6,829 7,245 (416) (6) % 5,467 1,362 25 %

Investment gains (losses), net 45 263 (218) (83) % (158) 203 NM

Fair value gains (losses), net 784 (880) 1,664 NM (276) 1,060 NM

Administrative expenses (748) (803) 55 (7) % (749) 1 — %

Credit-related income (expenses) 770 1,400 (630) (45) % (2,663) 3,433 NM

Temporary Payroll Tax Cut Continuation 

Act of 2011 (TCCA) fees (731) (697) (34) 5 % (637) (94) 15 %

Other expenses, net* (634) (819) 185 (23) % (406) (228) 56 %

Income before federal income taxes 6,315 5,709 606 11 % 578 5,737 NM

Provision for federal income taxes (1,322) (1,139) (183) 16 % (117) (1,205) NM

Net income $ 4,993 $ 4,570 $ 423 9 % $ 461 $ 4,532 NM

Total comprehensive income $ 4,966 $ 4,566 $ 400 9 % $ 476 $ 4,490 NM

Net worth $ 30,225 $ 25,259 $ 4,966 20 % $ 13,945 $ 16,280 117 %

NM - Not meaningful

* Other expense, net also includes credit enhancement expense and change in expected credit enhancement recoveries

Financial Highlights 

• Net income increased $423 million in the first quarter of 2021 compared with the fourth quarter of 2020 driven primarily by a 

shift to fair value gains in the first quarter of 2021 from fair value losses in the fourth quarter of 2020, partially offset by lower 

credit-related income and lower net interest income.

• Fair value gains were $784 million in the first quarter of 2021, compared with fair value losses of $880 million in the fourth 

quarter of 2020. The $1.7 billion shift from fair value losses in the prior quarter to fair value gains in the first quarter of 2021 

resulted largely from the company’s implementation of hedge accounting in January 2021.

• Credit-related income decreased by $630 million in the first quarter of 2021 compared with the fourth quarter of 2020. Creditrelated income in the first quarter of 2021 was driven by a benefit for credit losses due primarily to higher actual and 

forecasted home prices, partially offset by higher actual and projected interest rates. 

• Net interest income decreased $344 million in the first quarter of 2021 compared with the fourth quarter of 2020 driven 

primarily by a decrease in net amortization income due to lower levels of single-family mortgage loan prepayment activity in 

the first quarter of 2021. The company expects that lower levels of refinancing in the future will likely result in fewer loan 

prepayments leading to lower amortization income in any one period as loans remain outstanding for longer.

First Quarter 2021 Results 2
Single-Family Business Financial Results

(Dollars in millions) Q121 Q420 Variance % Change Q120 Variance % Change

Net interest income $ 5,894 $ 6,152 $ (258) (4) % $ 4,541 $ 1,353 30 %

Fee and other income 62 130 (68) (52) % 94 (32) (34) %

Net revenues 5,956 6,282 (326) (5) % 4,635 1,321 29 %

Investment gains (losses), net 64 201 (137) (68) % (152) 216 NM

Fair value gains (losses), net 740 (805) 1,545 NM (460) 1,200 NM

Administrative expenses (623) (671) 48 (7) % (629) 6 (1) %

Credit-related income (expenses) 679 1,324 (645) (49) % (2,250) 2,929 NM

Temporary Payroll Tax Cut Continuation 

Act of 2011 (TCCA) fees (731) (697) (34) 5 % (637) (94) 15 %

Other expenses, net* (529) (706) 177 (25) % (421) (108) 26 %

Income before federal income taxes 5,556 4,928 628 13 % 86 5,470 NM

Provision for federal income taxes (1,162) (984) (178) 18 % (18) (1,144) NM

Net income $ 4,394 $ 3,944 $ 450 11 % $ 68 $ 4,326 NM

Average charged guaranty fee on new 

conventional acquisitions, net of TCCA 48.0 bps 45.8 bps 2.2 bps 5 % 49.4 bps (1.4) bps (3) %

Average charged guaranty fee on 

conventional guaranty book of 

business, net of TCCA

44.9 bps 44.5 bps 0.4 bps 1 % 43.8 bps 1.1 bps 3 %

* Other expense, net also includes credit enhancement expense and change in expected credit enhancement recoveries

Key Business Highlights 

• Single-family conventional acquisition volume was $400 billion in the first quarter of 2021, a decrease of 6% compared with 

the record volume in the fourth quarter of 2020. The $26 billion decrease was driven by a decrease in purchase volume 

largely due to seasonality, as typically fewer borrowers purchase homes in the first quarter of the year than in the fourth 

quarter. Refinance acquisition volume in the first quarter remained flat compared with the fourth quarter, while remaining at 

near-record levels. 9% of the company’s single-family conventional guaranty book of business as of March 31, 2021 was 

originated in 2021.

• Average single-family conventional guaranty book of business during the first quarter of 2021 increased from the fourth 

quarter of 2020 by 2.4%. 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 57% and weighted-average FICO credit score of 751.

• Average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book increased from 44.5 

basis points for the three months ended December 31, 2020 to 44.9 basis points for the three months ended March 31,

2021. Average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, increased 2.2 

basis points to 48.0 basis points for the three months ended March 31, 2021 from 45.8 basis points for the three months 

ended December 31, 2020, driven by the implementation of the adverse market refinance fee in December 2020. 

• As of March 31, 2021, 2.5% of the single-family guaranty book of business based on loan count, or 429,592 loans, was in 

forbearance, the vast majority of which was related to the COVID-19 pandemic, compared with 3.0% as of December 31, 

2020. As of March 31, 2021, 10% of the loans in forbearance were still current.

• Single-family serious delinquency rate decreased to 2.58% as of March 31, 2021, from 2.87% as of December 31, 2020, 

due to the on-going economic recovery and the decline in the number of the company’s single-family loans in a COVID-19 

forbearance plan. Single-family serious delinquency rate excluding loans in forbearance was 0.66% as of both March 31, 

2021 and December 31, 2020. Single-family seriously delinquent loans are loans that are 90 days or more past due or in the 

foreclosure process.

First Quarter 2021 Results 3
Multifamily Business Financial Results

(Dollars in millions) Q121 Q420 Variance % Change Q120 Variance % Change

Net interest income $ 848 $ 934 $ (86) (9) % $ 806 $ 42 5 %

Fee and other income 25 29 (4) (14) % 26 (1) (4) %

Net revenues 873 963 (90) (9) % 832 41 5 %

Fair value gains (losses), net 44 (75) 119 NM 184 (140) (76) %

Administrative expenses (125) (132) 7 (5) % (120) (5) 4 %

Credit-related income (expenses) 91 76 15 20 % (413) 504 NM

Credit enhancement expense (58) (56) (2) 4 % (60) 2 (3) %

Change in expected credit enhancement 

recoveries (15) (51) 36 (71) % 130 (145) NM

Other income (expense), net (51) 56 (107) NM (61) 10 (16) %

Income before federal income taxes 759 781 (22) (3) % 492 267 54 %

Provision for federal income taxes (160) (155) (5) 3 % (99) (61) 62 %

Net income $ 599 $ 626 $ (27) (4) % $ 393 $ 206 52 %

Average charged guaranty fee rate on 

multifamily guaranty book of business, 

at end of period

75.9 bps 74.5 bps 1.4 bps 2 % 71.9 bps 4.0 bps 6 %

Key Business Highlights 

• New multifamily business volume was $22 billion during the first quarter of 2021. The Federal Housing Finance Agency 

(FHFA) established a 2021 multifamily volume cap of $70 billion, of which 50% must be mission-driven, focused on certain 

affordable and underserved market segments, and 20% must be affordable to residents earning 60% of area median 

income or below. 

• The multifamily guaranty book of business increased by $15 billion in the first quarter of 2021 to $399 billion. The average 

charged guaranty fee on the multifamily book increased from 74.5 basis points for the fourth quarter of 2020 to 75.9 basis 

points for the first quarter of 2021 as a result of increased pricing. This resulted in an increase in guaranty fee revenue, 

which was more than offset by a decrease in other net interest income.

• As of March 31, 2021, based on unpaid principal balance, 1.3% of Fannie Mae’s multifamily guaranty book of business had 

received a forbearance plan (excluding loans that liquidated prior to period end), primarily as a result of the COVID-19 

pandemic. More than three-fourths of those loans, measured by unpaid principal balance, were in a repayment plan or 

reinstated and only 0.2% of the book, or $917 million in unpaid principal balance, was still in active forbearance as of March 

31, 2021.

• The multifamily serious delinquency rate decreased to 0.66% as of March 31, 2021 from 0.98% as of December 31, 2020, 

driven primarily by loans that received forbearance that are now in a forbearance repayment plan or have been modified or 

otherwise reinstated. This rate increased from 0.05% as of March 31, 2020 due to the economic dislocation caused by the 

COVID-19 pandemic, which increased borrower participation in forbearance plans since the start of the pandemic. The 

multifamily serious delinquency rate excluding loans that have received a forbearance was 0.03% as of March 31, 2021 and 

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

First Quarter 2021 Results 4
Net Worth and Capital Requirement

The chart below shows information about Fannie Mae’s net worth and estimated capital requirement under FHFA’s enterprise 

regulatory capital framework. The company’s comprehensive income of $5.0 billion for the first quarter of 2021 resulted in a $5.0 

billion increase in its net worth to $30.2 billion as of March 31, 2021. 

Fannie Mae estimates that, had the new enterprise regulatory capital framework’s requirements been applicable to the company 

as of March 31, 2021, it would have been required to hold approximately $190 billion in adjusted total capital, of which 

approximately $140 billion must be in the form of common equity tier 1 capital. Prescribed buffers drive approximately $75 billion 

of the total requirements. Fannie Mae’s estimated capital requirement grew by approximately $5 billion in the first quarter of 2021 

compared with the prior quarter, driven by growth in the company’s guaranty book of business and a reduction in the benefits 

received from credit risk transfer transactions. 

 

(Dollars in billions)

Net Worth and Estimated Capital Requirement

$25.3 $30.2

$185 $190

$135 $140

$50

$50

12/31/20 03/31/21

$0

$100

$200

Net Worth*

Remaining Treasury 

funding commitment is 

$113.9 billion

Estimated Common Equity Tier 1 Capital Requirement

Estimated Other Tier 1 and Tier 2 Capital Requirement

* Net worth is not a measure of regulatory capital under FHFA’s enterprise regulatory capital framework

For information about Fannie Mae’s capital requirements, see “Business—Legislation and Regulation—GSE Act and Other 

Legislative and Regulatory Matters—Capital” in the company’s 2020 Form 10-K and “Liquidity and Capital Management—Capital 

Management—Capital Requirements” in its First Quarter 2021 Form 10-Q.

Fannie Mae’s condensed consolidated balance sheets and condensed statements of operations and income for the first quarter 

of 2021 are available in the accompanying Annex; however, investors and interested parties should read the company’s First 

Quarter 2021 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 2021 Form 10-Q. Additional information about the company’s financial and credit 

performance is contained in Fannie Mae’s “Q1 2021 Financial Supplement” at www.fanniemae.com.

# # #

In this release, the company has presented forward-looking statements regarding mortgage market conditions and the 

company’s future business and financial results. 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 First Quarter 2021 Form 10-Q and its 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.

First Quarter 2021 Results 5
ANNEX

FANNIE MAE

Condensed Consolidated Balance Sheets - (Unaudited)

(Dollars in millions)

As of

March 31, 

2021

December 31, 

2020

ASSETS

Cash and cash equivalents $ 26,538 $ 38,337 

Restricted cash and cash equivalents (includes $80,899 and $68,308, respectively, related to 

consolidated trusts) 87,803 77,286 

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

(includes $40,837 and $0, respectively, related to consolidated trusts) 54,937 28,200 

Investments in securities:

Trading, at fair value (includes $6,658 and $6,544, respectively, pledged as collateral) 111,256 136,542 

Available-for-sale, at fair value (with an amortized cost of $1,440 and $1,606, net of allowance for 

credit losses of $3 as of March 31, 2021 and December 31, 2020) 1,502 1,697 

Total investments in securities 112,758 138,239 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 7,824 5,197 

Loans held for investment, at amortized cost:

Of Fannie Mae 103,310 112,726 

Of consolidated trusts 3,638,374 3,546,521 

Total loans held for investment (includes $6,048 and 6,490, respectively, at fair value) 3,741,684 3,659,247 

Allowance for loan losses (9,628) (10,552) 

Total loans held for investment, net of allowance 3,732,056 3,648,695 

Total mortgage loans 3,739,880 3,653,892 

Advances to lenders 10,572 10,449 

Deferred tax assets, net 12,516 12,947 

Accrued interest receivable, net (includes $9,732 and $9,635, respectively, related to consolidated trusts 

and net of an allowance of $226 and $216 as of March 31, 2021 and December 31, 2020, respectively) 9,993 9,937 

Acquired property, net 1,183 1,261 

Other assets 13,923 15,201 

Total assets $ 4,070,103 $ 3,985,749 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $8,768 and $8,955, respectively, related to consolidated trusts) $ 9,585 $ 9,719 

Debt:

Of Fannie Mae (includes $3,336 and $3,728, respectively, at fair value) 273,442 289,572 

Of consolidated trusts (includes $23,601 and $24,586, respectively, at fair value) 3,740,538 3,646,164 

Other liabilities (includes $1,375 and $1,523, respectively, related to consolidated trusts) 16,313 15,035 

Total liabilities 4,039,878 3,960,490 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $146,758 and $142,192, 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 (103,117) (108,110) 

Accumulated other comprehensive income 89 116 

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) 30,225 25,259 

Total liabilities and equity $ 4,070,103 $ 3,985,749 

See Notes to Condensed Consolidated Financial Statements in the First Quarter 2021 Form 10-Q

First Quarter 2021 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 

March 31,

2021 2020

Interest income:

Trading securities $ 140 $ 316 

Available-for-sale securities 19 31 

Mortgage loans 23,353 28,938 

Federal funds sold and securities purchased under agreements to resell or similar arrangements 8 107 

Other 42 34 

Total interest income 23,562 29,426 

Interest expense:

Short-term debt (3) (102) 

 Long-term debt (16,817) (23,977) 

Total interest expense (16,820) (24,079) 

Net interest income 6,742 5,347 

Benefit (provision) for credit losses 765 (2,583) 

Net interest income after benefit (provision) for credit losses 7,507 2,764 

Investment gains (losses), net 45 (158) 

Fair value gains (losses), net 784 (276) 

Fee and other income 87 120 

Non-interest income (loss) 916 (314) 

Administrative expenses:

Salaries and employee benefits (387) (393) 

Professional services (214) (212) 

Other administrative expenses (147) (144) 

Total administrative expenses (748) (749) 

Foreclosed property income (expense) 5 (80) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (731) (637) 

Credit enhancement expense (284) (376) 

Change in expected credit enhancement recoveries (31) 188 

Other expenses, net (319) (218) 

Total expenses (2,108) (1,872) 

Income before federal income taxes 6,315 578 

Provision for federal income taxes (1,322) (117) 

Net income 4,993 461 

Other comprehensive income (loss):

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

taxes (23) 18 

Other, net of taxes (4) (3) 

Total other comprehensive income (loss) (27) 15 

Total comprehensive income $ 4,966 $ 476 

Net income $ 4,993 $ 461 

Dividends distributed or amounts attributable to senior preferred stock (4,966) (476) 

Net income (loss) attributable to common stockholders $ 27 $ (15) 

Earnings per share:

Basic $ 0.00 $ 0.00 

Diluted 0.00 0.00 

Weighted-average common shares outstanding:

Basic 5,867 5,867 

Diluted 5,893 5,867 

See Notes to Condensed Consolidated Financial Statements in the First Quarter 2021 Form 10-Q

First Quarter 2021 Results 7