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

 202-752-2034 

Date: February 15, 2022 

Fannie Mae Reports Net Income of $22.2 Billion for 2021 and 

$5.2 Billion for Fourth Quarter 2021

• $22.2 billion annual net income and $5.2 billion fourth quarter 2021 net 

income, with net worth reaching $47.4 billion as of December 31, 2021

“Fannie Mae continued to be a crucial 

source of mortgage financing in 2021. Our 

performance was strong and many parts of 

the housing economy performed well in 

2021, but not for everyone. Our housing 

mission to advance equitable and 

sustainable access to homeownership and 

quality, affordable rental housing has never 

been more important. Much work remains 

to ensure that America’s housing finance 

system serves all people fairly and is safe, 

sound, and properly capitalized.”

Hugh R. Frater, Chief Executive Officer

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

markets in 2021

• $451.3 billion of Single-Family home purchase acquisitions in 2021, highest 

on record and of which nearly 50% were for first-time homebuyers

• Acquired 1.5 million home purchase loans and 3.3 million refinance loans 

during 2021, helping homeowners take advantage of low interest rates

• Approximately 694,000 units of rental housing financed in 2021, nearly 95% 

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

income, providing support for both workforce and affordable housing

• More than 1.4 million single-family forbearance plans initiated to help 

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

2021, approximately 1.3 million of these loans have exited forbearance, 

including approximately 788,000 through reinstatement or payoff, and 

approximately 380,000 through the company’s payment deferral option 

• Home price growth in 2021 was 19.0%, the highest annual growth rate in the 

history of Fannie Mae’s home price index

Q4 and Full Year 2021 Key Results

$47.4 Billion Net Worth $1.4 Trillion Supporting Housing Activity 

Increase of $22.1 billion in 2021 SF Home Purchases SF Refinancings MF Rental Units

 

$(3.7)B

$6.2B

$14.6B

$25.3B

$47.4B

2017 2018 2019 2020 2021

$570B $512B

$666B

$1.4T $1.4T

2017 2018 2019 2020 2021

$5.2 Billion Net Income for Q4 Single-Family SDQ Rate

Increase of $347 million compared with third quarter 2021 SDQ Rate SDQ Rate excluding loans in forbearance

 

$4.6B $5.0B

$7.2B

$4.8B $5.2B

Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021

2.87% 2.58%

2.08%

1.62%

1.25%

0.66% 0.66% 0.64% 0.72%

0.81%

Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021

Fourth Quarter and Full Year 2021 Results 1
Summary of Financial Results

(Dollars in millions) 2021 2020 Variance % Change Q421 Q321 Variance % Change

Net interest income $ 29,587 $ 24,866 $ 4,721 19 % $ 7,587 $ 6,972 $ 615 9 %

Fee and other income 361 462 (101) (22) % 60 111 (51) (46) %

Net revenues 29,948 25,328 4,620 18 % 7,647 7,083 564 8 %

Investment gains, net 1,352 907 445 49 % 418 243 175 72 %

Fair value gains (losses), net 155 (2,501) 2,656 NM (166) (17) (149) NM

Administrative expenses (3,065) (3,068) 3 — % (826) (745) (81) (11) %

Credit-related income (expense) 5,097 (855) 5,952 NM 912 868 44 5 %

Temporary Payroll Tax Cut 

Continuation Act of 2011 (TCCA) 

fees (3,071) (2,673) (398) (15) % (801) (781) (20) (3) %

Other expenses, net* (2,467) (2,259) (208) (9) % (692) (543) (149) (27) %

Income before federal income 

taxes 27,949 14,879 13,070 88 % 6,492 6,108 384 6 %

Provision for federal income taxes (5,773) (3,074) (2,699) (88) % (1,303) (1,266) (37) (3) %

Net income $ 22,176 $ 11,805 $ 10,371 88 % $ 5,189 $ 4,842 $ 347 7 %

Total comprehensive income $ 22,098 $ 11,790 $ 10,308 87 % $ 5,184 $ 4,828 $ 356 7 %

Net worth $ 47,357 $ 25,259 $ 22,098 87 % $ 47,357 $ 42,173 $ 5,184 12 %

NM - Not meaningful

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

Financial Highlights 

• Net income increased $10.4 billion in 2021, compared with 2020 driven primarily by a shift from credit-related expense to 

credit-related income, higher net interest income, and a shift from fair value losses to fair value gains.

• Credit-related income was $5.1 billion in 2021, compared with credit-related expense of $855 million in 2020. Credit-related 

income in 2021 was driven primarily by strong actual and forecasted home price growth, an increase in the volume of loan 

redesignations, and a reduction in the company’s estimate of losses it expects to incur as a result of the COVID-19 

pandemic, partially offset by increases in interest rates. Credit-related expense in 2020 was driven by the impact of 

COVID-19 and the associated economic downturn, offset by higher actual and forecasted home prices, lower actual and 

projected mortgage interest rates, and the redesignation of certain reperforming single-family loans from held-for-investment 

to held-for-sale.

• Net interest income increased $4.7 billion in 2021 compared with 2020, driven primarily by higher base guaranty fee income 

and higher amortization income. The company’s base guaranty fee income grew as a result of growth in its guaranty book of 

business to $3.9 trillion in 2021, from $3.6 trillion in 2020, coupled with an increase in the company’s average charged 

guaranty fee. Single-family refinances of $903.7 billion in 2021 drove significant prepayment activity resulting in elevated 

amortization income during the year. Single-family mortgage loan prepayment activity slowed in the later part of 2021; 

however, refinancing activity remained strong throughout most of 2021 due to the continued low interest-rate environment.

• Fair value gains were $155 million in 2021, compared with fair value losses of $2.5 billion in 2020. Fair value gains in 2021

were driven primarily by declines in the fair value of risk management derivatives and trading securities, offset by the impact 

of hedge accounting. Fair value losses in 2020, before the company implemented hedge accounting, were driven primarily 

by declines in the fair value of commitments to sell mortgage-related securities as prices increased during the commitment 

period. 

Fourth Quarter and Full Year 2021 Results 2
Single-Family Business Financial Results

(Dollars in millions) 2021 2020 Variance % Change Q4 2021 Q3 2021 Variance % Change

Net interest income $ 25,429 $ 21,502 $ 3,927 18 % $ 6,342 $ 5,870 $ 472 8 %

Fee and other income 269 368 (99) (27) % 41 86 (45) (52) %

Net revenues 25,698 21,870 3,828 18 % 6,383 5,956 427 7 %

Investment gains, net 1,392 728 664 91 % 448 222 226 102 %

Fair value gains (losses), net 167 (2,539) 2,706 NM (156) (31) (125) NM

Administrative expenses (2,557) (2,559) 2 — % (695) (620) (75) (12) %

Credit-related income (expense) 4,586 (232) 4,818 NM 575 807 (232) (29) %

Temporary Payroll Tax Cut 

Continuation Act of 2011 (TCCA) 

fees (3,071) (2,673) (398) (15) % (801) (781) (20) (3) %

Other expenses, net* (2,092) (2,107) 15 1 % (509) (463) (46) (10) %

Income before federal income 

taxes 24,123 12,488 11,635 93 % 5,245 5,090 155 3 %

Provision for federal income taxes (4,996) (2,607) (2,389) (92) % (1,044) (1,065) 21 2 %

Net income $ 19,127 $ 9,881 $ 9,246 94 % $ 4,201 $ 4,025 $ 176 4 %

Average charged guaranty fee on 

new conventional acquisitions, 

net of TCCA

47.6 bps 46.4 bps 1.2 bps 3 % 47.1 bps 47.3 bps (0.2) bps — %

Average charged guaranty fee on 

conventional guaranty book of 

business, net of TCCA

45.2 bps 44.2 bps 1.0 bps 2 % 45.5 bps 45.4 bps 0.1 bps — %

NM - Not meaningful

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

Key Business Highlights 

• Single-family conventional acquisition volume was $1.4 trillion in 2021. Purchase acquisition volume was $451.3 billion in 

2021, the highest on record, of which nearly 50% was for first-time homebuyers. Refinance acquisition volume was 

$903.7 billion in 2021, a decline from $947.8 billion in 2020, the highest on record. Both purchase and refinance volumes 

remained elevated due to the continued low interest-rate environment. 

• Average single-family conventional guaranty book of business in 2021 increased from 2020 by 9.5% driven primarily by 

growth in the average balance of loans acquired during the year. Record home price appreciation in 2021 has reduced the 

weighted-average mark-to-market loan-to-value ratio of the company’s single-family conventional guaranty book of business 

to 54% as of December 31, 2021. The weighted average FICO credit score of the company’s single-family conventional 

guaranty book of business was 753 as of December 31, 2021.

• Average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book increased from 44.2 

basis points as December 31, 2020 to 45.2 basis points as of December 31, 2021. Average charged guaranty fee on newly 

acquired single-family conventional loans, net of TCCA fees, increased 1.2 basis points to 47.6 basis points in 2021, 

compared with 46.4 basis points in 2020. 

• As of December 31, 2021, 0.7% of the single-family guaranty book of business based on loan count, or 117,440 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. Since the start of the pandemic, 88% of loans that entered forbearance have successfully exited.

• Single-family serious delinquency rate decreased to 1.25% as of December 31, 2021, from 1.62% as of September 30, 

2021 and 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, increased to 0.81% as of December 31, 2021, from 0.72% as of September 30, 2021 and 0.66% as of 

December 31, 2020, due primarily to loans exiting forbearance and entering into trial modifications. The company expects 

the majority of loans exiting forbearance and entering trial modifications currently and in the future will successfully complete 

their trial modification periods. Upon successful completion of a trial modification period (typically lasting three to four 

months), a loan will no longer be considered seriously delinquent. 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 2021 Results 3
Multifamily Business Financial Results

(Dollars in millions) 2021 2020 Variance % Change Q4 2021 Q3 2021 Variance % Change

Net interest income $ 4,158 $ 3,364 $ 794 24 % $ 1,245 $ 1,102 $ 143 13 %

Fee and other income 92 94 (2) (2) % 19 25 (6) (24) %

Net revenues 4,250 3,458 792 23 % 1,264 1,127 137 12 %

Fair value gains (losses), net (12) 38 (50) NM (10) 14 (24) NM

Administrative expenses (508) (509) 1 — % (131) (125) (6) (5) %

Credit-related income (expenses) 511 (623) 1,134 NM 337 61 276 NM

Credit enhancement expense (239) (220) (19) (9) % (67) (59) (8) (14) %

Change in expected credit 

enhancement recoveries (108) 144 (252) NM (92) (14) (78) NM

Other income (expense), net (68) 103 (171) NM (54) 14 (68) NM

Income before federal income 

taxes 3,826 2,391 1,435 60 % 1,247 1,018 229 22 %

Provision for federal income taxes (777) (467) (310) (66) % (259) (201) (58) (29) %

Net income $ 3,049 $ 1,924 $ 1,125 58 % $ 988 $ 817 $ 171 21 %

Average charged guaranty fee 

rate on multifamily guaranty book 

of business, at period end

78.4 bps 74.5 bps 3.9 bps 5% 78.4 bps 77.5 bps 0.9 bps 1%

NM - Not meaningful

Key Business Highlights 

• New multifamily business volume was $69.5 billion in 2021, in compliance with the $70 billion volume cap established by the 

Federal Housing Finance Agency (FHFA) for 2021. The company’s 2021 business volume also met FHFA’s requirement that 

a minimum of 50% of volume be mission-driven, focused on specified affordable and underserved market segments, with 

20% affordable to residents earning 60% of area median income or below. The cap for 2022 is $78 billion, with a minimum 

of 50% mission-driven volume, and 25% of loan purchases affordable to residents earning 60% or less of area median 

income.

• The multifamily guaranty book of business grew by 7% in 2021 to $413.1 billion. The average charged guaranty fee on the 

multifamily book increased from 74.5 basis points as of December 31, 2020 to 78.4 basis points as of December 31, 2021. 

These changes contributed to an increase in guaranty fee revenue, which, along with higher yield maintenance revenue due 

to higher prepayment volumes, drove the year-over-year increase in net interest income.

• As of December 31, 2021, nearly 90% of the loans in the company’s multifamily guaranty book of business that had 

received a forbearance, measured by unpaid principal balance, were in a repayment plan or reinstated. Less than 0.1% of 

the multifamily book, or $363 million in unpaid principal balance, was still in active forbearance, with 66% resulting from 

COVID-19-related financial hardship.

• The multifamily serious delinquency rate remained flat at 0.42% as of December 31, 2021, compared with September 30, 

2021, and decreased from 0.98% as of December 31, 2020, driven primarily by the on-going economic recovery resulting in 

loans that received forbearance completing repayment plans or otherwise reinstating, offset by an increase in forbearance 

resulting from natural disaster-related financial hardship. The multifamily serious delinquency rate, excluding loans that 

received a forbearance, increased slightly to 0.04% as of December 31, 2021 from 0.03% as of September 30, 2021 and 

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

Fourth Quarter and Full Year 2021 Results 4
Additional Matters

Fannie Mae’s Consolidated Balance Sheets and Statements of Operations and Income for the full year of 2021 are available in 

the accompanying Annex; however, investors and interested parties should read the company’s 2021 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 2021 Form 

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

Year 2021 Financial Supplement” at www.fanniemae.com.

# # #

In this release, the company has presented a forward-looking statement regarding the performance of the company’s loans in 

trial modifications. Actual outcomes could be materially different due to a variety of factors, including those described in 

“Forward-Looking Statements” and “Risk Factors” in the company’s 2021 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 and follow us on twitter.com/fanniemae.

Fourth Quarter and Full Year 2021 Results 5
ANNEX

FANNIE MAE

 Consolidated Balance Sheets 

(Dollars in millions)

As of December 31, 2021

2021 2020

ASSETS

Cash and cash equivalents $ 42,448 $ 38,337 

Restricted cash and cash equivalents (includes $59,203 and $68,308, respectively, related to consolidated 

trusts) 66,183 77,286 

Securities purchased under agreements to resell or similar arrangements (includes $13,533 and $0, 

respectively, related to consolidated trusts) 20,743 28,200 

Investments in securities:

Trading, at fair value (includes $4,224 and $6,544, respectively, pledged as collateral) 88,206 136,542 

Available-for-sale, at fair value (with an amortized cost of $827 and $1,606, net of allowance for credit 

losses of $0 and $3, respectively) 837 1,697 

Total investments in securities 89,043 138,239 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 5,134 5,197 

Loans held for investment, at amortized cost:

Of Fannie Mae 61,025 112,726 

Of consolidated trusts 3,907,712 3,546,521 

Total loans held for investment (includes $4,964 and 6,490, respectively, at fair value) 3,968,737 3,659,247 

Allowance for loan losses (5,629) (10,552) 

Total loans held for investment, net of allowance 3,963,108 3,648,695 

Total mortgage loans 3,968,242 3,653,892 

Advances to lenders 8,414 10,449 

Deferred tax assets, net 12,715 12,947 

Accrued interest receivable, net (includes $8,878 and $9,635, respectively, related to consolidated trusts and 

net of an allowance of $140 and $216, respectively) 9,264 9,937 

Acquired property, net 1,259 1,261 

Other assets 10,855 15,201 

Total assets $ 4,229,166 $ 3,985,749 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $8,517 and $8,955, respectively, related to consolidated trusts) $ 9,186 $ 9,719 

Debt:

Of Fannie Mae (includes $2,381 and $3,728, respectively, at fair value) 200,892 289,572 

Of consolidated trusts (includes $21,735 and $24,586, respectively, at fair value) 3,957,299 3,646,164 

Other liabilities (includes $1,245 and $1,523, respectively, related to consolidated trusts) 14,432 15,035 

Total liabilities 4,181,809 3,960,490 

Commitments and contingencies (Note 16) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $163,672 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 (85,934) (108,110) 

Accumulated other comprehensive income 38 116 

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

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

Stock and Warrant for information on the related dividend obligation and liquidation preference) 47,357 25,259 

Total liabilities and equity $ 4,229,166 $ 3,985,749 

See Notes to Consolidated Financial Statements in the 2021 Form 10-K

Fourth Quarter and Full Year 2021 Results 6
FANNIE MAE

(In conservatorship)

 Consolidated Statements of Operations and Comprehensive Income

(Dollars in millions, except per share amounts)

For the Twelve Months ended 

December 31,

2021 2020 2019

Interest income:

Trading securities $ 524 $ 874 $ 1,627 

Available-for-sale securities 58 98 175 

Mortgage loans 98,930 106,316 117,374 

Securities purchased under agreements to resell or similar arrangements 21 146 843 

Other 142 135 163 

Total interest income 99,675 107,569 120,182 

Interest expense:

Short-term debt (4) (182) (501) 

 Long-term debt (70,084) (82,521) (98,388) 

Total interest expense (70,088) (82,703) (98,889) 

Net interest income 29,587 24,866 21,293 

Benefit (provision) for credit losses 5,130 (678) 4,011 

Net interest income after benefit (provision) for credit losses 34,717 24,188 25,304 

Investment gains, net 1,352 907 1,770 

Fair value gains (losses), net 155 (2,501) (2,214) 

Fee and other income 361 462 566 

Non-interest income (loss) 1,868 (1,132) 122 

Administrative expenses:

Salaries and employee benefits (1,493) (1,554) (1,486) 

Professional services (817) (921) (967) 

Other administrative expenses (755) (593) (570) 

Total administrative expenses (3,065) (3,068) (3,023) 

Foreclosed property expense (33) (177) (515) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (3,071) (2,673) (2,432) 

Credit enhancement expense (1,051) (1,361) (1,134) 

Change in expected credit enhancement recoveries (194) 233 — 

Other expenses, net (1,222) (1,131) (745) 

Total expenses (8,636) (8,177) (7,849) 

Income before federal income taxes 27,949 14,879 17,577 

Provision for federal income taxes (5,773) (3,074) (3,417) 

Net income 22,176 11,805 14,160 

Other comprehensive loss:

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

reclassification adjustments and taxes (67) (23) (179) 

Other, net of taxes (11) 8 (12) 

Total other comprehensive loss (78) (15) (191) 

Total comprehensive income $ 22,098 $ 11,790 $ 13,969 

Net income $ 22,176 $ 11,805 $ 14,160 

Dividends distributed or amounts attributable to senior preferred stock (22,098) (11,790) (13,969) 

Net income attributable to common stockholders $ 78 $ 15 $ 191 

Earnings per share:

Basic $ 0.01 $ 0.00 $ 0.03 

Diluted 0.01 0.00 0.03 

Weighted-average common shares outstanding:

Basic 5,867 5,867 5,762 

Diluted 5,893 5,893 5,893 

See Notes to Consolidated Financial Statements in the 2021 Form 10-K

Fourth Quarter and Full Year 2021 Results 7