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

 202-752-2034 

Date: August 1, 2023 

Fannie Mae Reports Net Income of $5.0 Billion for Second Quarter 2023

• $5.0 billion net income for the second quarter of 2023, with net worth reaching $69.0 

billion as of June 30, 2023

“With our solid second quarter 

performance, Fannie Mae 

continues to serve as a 

stabilizing force for America’s 

housing finance system in even 

the most challenging markets. 

After nearly 15 years of 

transformation, today, Fannie 

Mae is safer and stronger. This 

is thanks to our team’s 

dedicated efforts to improve the 

resiliency of our business and 

our steadfast focus on risk 

management.”

Priscilla Almodovar, Chief 

Executive Officer

• Net income increased $1.2 billion in the second quarter of 2023 compared with the first 

quarter of 2023, primarily driven by a $1.4 billion shift from provision for credit losses to 

benefit for credit losses

• $104 billion in liquidity provided to the mortgage market in the second quarter of 2023

• Acquired approximately 227,000 single-family purchase loans, of which more than 45%

were for first-time homebuyers, and approximately 54,000 single-family refinance loans 

during the second quarter of 2023

• Financed approximately 139,000 units of multifamily rental housing in the second 

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 3.6% on a national basis in the second quarter of 2023, compared 

with a 1.4% increase in the first quarter of 2023

• The U.S. weekly average 30-year fixed-rate mortgage rate increased from 6.32% as of 

the end of the first quarter of 2023 to 6.71% as of the end of the second quarter of 2023

Q2 2023 Key Results

$69.0 Billion Net Worth $182 Billion Supporting Housing Activity

Increase of $5.0 billion in the second quarter of 2023 SF Home Purchases SF Refinancings MF Rental Units

 $14.6B

$25.3B

$47.4B

$60.3B

$69.0B

2019 2020 2021 2022 Q2 YTD

2023

$666B

$1.4T $1.4T

$684B

$182B

2019 2020 2021 2022 Q2 YTD

2023

$5.0 Billion Net Income for Q2 2023 Serious Delinquency Rates

Increase of $1.2 billion compared with first quarter 2023 Single-Family SDQ Rate Multifamily SDQ Rate

 $4.7B

$2.4B

$1.4B

$3.8B

$5.0B

Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

0.81% 0.69% 0.65% 0.59% 0.55%

0.34% 0.26% 0.24%

0.35% 0.37%

Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

Second Quarter 2023 Results 1
Summary of Financial Results

(Dollars in millions) Q223 Q123 Variance

% 

Change Q222 Variance

% 

Change

Net interest income $ 7,035 $ 6,786 $ 249 4 % $ 7,808 $ (773) (10) %

Fee and other income 70 63 7 11 % 81 (11) (14) %

Net revenues 7,105 6,849 256 4 % 7,889 (784) (10) %

Investment gains (losses), net 25 (67) 92 NM (49) 74 NM

Fair value gains, net 404 204 200 98 % 529 (125) (24) %

Administrative expenses (864) (868) 4 — % (795) (69) (9) %

Benefit (provision) for credit losses 1,266 (132) 1,398 NM (218) 1,484 NM

TCCA fees (856) (855) (1) — % (841) (15) (2) %

Credit enhancement expense(1) (384) (341) (43) (13) % (332) (52) (16) %

Change in expected credit enhancement 

recoveries (160) 120 (280) NM (47) (113) NM

Other expenses, net(2) (257) (130) (127) (98) % (261) 4 2 %

Income before federal income taxes 6,279 4,780 1,499 31 % 5,875 404 7 %

Provision for federal income taxes (1,285) (1,008) (277) (27) % (1,222) (63) (5) %

Net income $ 4,994 $ 3,772 $ 1,222 32 % $ 4,653 $ 341 7 %

Total comprehensive income $ 4,995 $ 3,772 $ 1,223 32 % $ 4,649 $ 346 7 %

Net worth $ 69,044 $ 64,049 $ 4,995 8 % $ 56,407 $ 12,637 22 %

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 $1.2 billion in the second quarter of 2023, compared with the first quarter of 2023, primarily 

driven by a $1.4 billion shift from provision for credit losses to benefit for credit losses.

• Net interest income increased $249 million in the second quarter of 2023, compared with the first quarter of 

2023, primarily driven by an increase in income from the company’s other investments portfolio and an increase 

in amortization income. Higher income from the other investments portfolio was due to an increase in shortterm yields. Amortization income increased due to increases in prepayment volumes in the second quarter of 

2023. 

• Benefit for credit losses was $1.3 billion in the second quarter of 2023, compared with a provision of $132 

million in the first quarter of 2023. The benefit for credit losses for the second quarter of 2023 was driven by a 

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

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

prices, partially offset by a provision on newly acquired loans.

• The multifamily provision was primarily due to decreases in estimated multifamily property values. 

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 estimated multifamily 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.

Second Quarter 2023 Results 2
Single-Family Business Financial Results

(Dollars in millions) Q223 Q123 Variance

% 

Change Q222 Variance

% 

Change

Net interest income $ 5,917 $ 5,672 $ 245 4 % $ 6,573 $ (656) (10) %

Fee and other income 52 48 4 8 % 60 (8) (13) %

Net revenues 5,969 5,720 249 4 % 6,633 (664) (10) %

Investment gains (losses), net 27 (71) 98 NM (27) 54 NM

Fair value gains, net 460 166 294 177 % 543 (83) (15) %

Administrative expenses (718) (720) 2 — % (671) (47) (7) %

Benefit (provision) for credit losses 1,418 47 1,371 NM (206) 1,624 NM

TCCA fees (856) (855) (1) — % (841) (15) (2) %

Credit enhancement expense (327) (287) (40) (14) % (270) (57) (21) %

Change in expected credit enhancement 

recoveries (223) 95 (318) NM (43) (180) NM

Other expenses, net (203) (116) (87) (75) % (224) 21 9 %

Income before federal income taxes 5,547 3,979 1,568 39 % 4,894 653 13 %

Provision for federal income taxes (1,153) (847) (306) (36) % (1,008) (145) (14) %

Net income $ 4,394 $ 3,132 $ 1,262 40 % $ 3,886 $ 508 13 %

Average charged guaranty fee on new 

conventional acquisitions, net of TCCA 

fees*

52.2 bps 51.6 bps 0.6 bps 1 % 49.6 bps 2.6 bps 5 %

Average charged guaranty fee on 

conventional guaranty book of business, 

net of TCCA fees*

46.8 bps 46.6 bps 0.2 bps — % 46.1 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 second quarter of 2023, an increase of 

32% compared with $67.5 billion in the first quarter of 2023. Purchase acquisition volume, of which more than 

45% was for first-time homebuyers, increased to $76.4 billion in the second quarter of 2023 from $56.5 billion in 

the first quarter of 2023. Refinance acquisition volume was $12.8 billion in the second quarter of 2023, an 

increase from $11.0 billion in the first quarter of 2023. 

• Average single-family conventional guaranty book of business in the second quarter of 2023 declined by $1.4 

billion from the first quarter of 2023 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 51% and a weighted-average FICO credit 

score at origination of 752 as of June 30, 2023. 

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

relatively flat at 46.8 basis points as of June 30, 2023, compared with 46.6 basis points as of March 31, 2023. 

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

relatively flat at 52.2 basis points for the second quarter of 2023, compared with 51.6 basis points for the first 

quarter of 2023.

• Single-family serious delinquency rate decreased to 0.55% as of June 30, 2023 from 0.59% as of March 31, 

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

process.

Second Quarter 2023 Results 3
Multifamily Business Financial Results

(Dollars in millions) Q223 Q123 Variance

% 

Change Q222 Variance

% 

Change

Net interest income $ 1,118 $ 1,114 $ 4 — % $ 1,235 $ (117) (9) %

Fee and other income 18 15 3 20 % 21 (3) (14) %

Net revenues 1,136 1,129 7 1 % 1,256 (120) (10) %

Fair value gains (losses), net (56) 38 (94) NM (14) (42) NM

Administrative expenses (146) (148) 2 1 % (124) (22) (18) %

Provision for credit losses (152) (179) 27 15 % (12) (140) NM

Credit enhancement expense (57) (54) (3) (6) % (62) 5 8 %

Change in expected credit enhancement 

recoveries 63 25 38 152 % (4) 67 NM

Other expenses, net* (56) (10) (46) NM (59) 3 5 %

Income before federal income taxes 732 801 (69) (9) % 981 (249) (25) %

Provision for federal income taxes (132) (161) 29 18 % (214) 82 38 %

Net income $ 600 $ 640 $ (40) (6) % $ 767 $ (167) (22) %

Average charged guaranty fee rate on 

multifamily guaranty book of business, at 

period end

77.4 bps 78.1 bps (0.7) bps (1) % 79.5 bps (2.1) bps (3) %

NM - Not meaningful

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

Key Business Highlights 

• New multifamily business volume was $15.1 billion in the second quarter of 2023, compared with $10.2 billion in 

the first quarter of 2023. 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 second quarter of 2023 to 

$454.7 billion. The average charged guaranty fee on the multifamily book declined slightly to 77.4 basis points 

as of June 30, 2023, compared with 78.1 basis points as of March 31, 2023.

• The multifamily serious delinquency rate increased to 0.37% as of June 30, 2023, compared with 0.35% as of 

March 31, 2023. Multifamily seriously delinquent loans are loans that are 60 days or more past due.

Second Quarter 2023 Results 4
Additional Matters

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

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

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

contained in Fannie Mae’s “Q2 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.

Second Quarter 2023 Results 5
ANNEX

FANNIE MAE

(In conservatorship)

 Condensed Consolidated Balance Sheets — (Unaudited)

(Dollars in millions)

As of

June 30, 

2023

December 31, 

2022

ASSETS

Cash and cash equivalents $ 52,229 $ 57,987 

Restricted cash and cash equivalents (includes $21,605 and $23,348, respectively, related to consolidated 

trusts) 27,206 29,854 

Securities purchased under agreements to resell (includes $10,450 and $3,475, respectively, related to 

consolidated trusts) 33,050 14,565 

Investments in securities, at fair value 51,231 50,825 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 513 2,033 

Loans held for investment, at amortized cost:

Of Fannie Mae 49,785 52,081 

Of consolidated trusts 4,080,809 4,071,669 

 Total loans held for investment (includes $3,433 and $3,645, respectively, at fair value) 4,130,594 4,123,750 

Allowance for loan losses (9,982) (11,347) 

Total loans held for investment, net of allowance 4,120,612 4,112,403 

Total mortgage loans 4,121,125 4,114,436 

Advances to lenders 3,483 1,502 

Deferred tax assets, net 11,990 12,911 

Accrued interest receivable, net (includes $9,442 and $9,241 related to consolidated trusts and net of 

allowance of $49 and $111, respectively) 9,930 9,821 

Other assets 13,466 13,387 

Total assets $ 4,323,710 $ 4,305,288 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $9,721 and $9,347, respectively, related to consolidated trusts) $ 10,413 $ 9,917 

Debt:

Of Fannie Mae (includes $884 and $1,161, respectively, at fair value) 137,696 134,168 

Of consolidated trusts (includes $15,172 and $16,260, respectively, at fair value) 4,094,654 4,087,720 

Other liabilities (includes $1,699 and $1,748, respectively, related to consolidated trusts) 11,903 13,206 

Total liabilities 4,254,666 4,245,011 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $185,548 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 (64,245) (73,011) 

Accumulated other comprehensive income 36 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) 69,044 60,277 

Total liabilities and equity $ 4,323,710 $ 4,305,288 

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

Second 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 June 30,

For the Six Months 

Ended June 30,

2023 2022 2023 2022

Interest income:

Investments in securities $ 1,101 $ 318 $ 2,082 $ 484 

Mortgage loans 32,655 29,082 64,792 56,224 

Other 584 55 1,036 87 

Total interest income 34,340 29,455 67,910 56,795 

Interest expense:

Short-term debt (183) (5) (302) (6) 

Long-term debt (27,122) (21,642) (53,787) (41,582) 

Total interest expense (27,305) (21,647) (54,089) (41,588) 

Net interest income 7,035 7,808 13,821 15,207 

Benefit (provision) for credit losses 1,266 (218) 1,134 (458) 

Net interest income after benefit (provision) for credit losses 8,301 7,590 14,955 14,749 

Investment gains (losses), net 25 (49) (42) (151) 

Fair value gains, net 404 529 608 1,009 

Fee and other income 70 81 133 164 

Non-interest income 499 561 699 1,022 

Administrative expenses:

Salaries and employee benefits (467) (398) (947) (805) 

Professional services (192) (198) (376) (407) 

Other administrative expenses (205) (199) (409) (391) 

Total administrative expenses (864) (795) (1,732) (1,603) 

TCCA fees (856) (841) (1,711) (1,665) 

Credit enhancement expense (384) (332) (725) (610) 

Change in expected credit enhancement recoveries (160) (47) (40) 13 

Other expenses, net (257) (261) (387) (458) 

Total expenses (2,521) (2,276) (4,595) (4,323) 

Income before federal income taxes 6,279 5,875 11,059 11,448 

Provision for federal income taxes (1,285) (1,222) (2,293) (2,387) 

Net income 4,994 4,653 8,766 9,061 

Other comprehensive income (loss) 1 (4) 1 (11) 

Total comprehensive income $ 4,995 $ 4,649 $ 8,767 $ 9,050 

Net income $ 4,994 $ 4,653 $ 8,766 $ 9,061 

Dividends distributed or amounts attributable to senior preferred stock (4,995) (4,649) (8,767) (9,050) 

Net income (loss) attributable to common stockholders $ (1) $ 4 $ (1) $ 11 

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 5,867 5,893 5,867 5,893 

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

Second Quarter 2023 Results 7