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

 202-752-2034 

Date: October 29, 2021 

Fannie Mae Reports Net Income of $4.8 Billion for Third Quarter 2021

• $4.8 billion net income for the third quarter of 2021 compared with 

$7.2 billion for the second quarter of 2021

“It was another strong quarter for the housing 

market and for Fannie Mae. Our results reflect 

the credit quality of our guaranty book, a 

growing economy, strong home price growth, 

and low interest rates. However, rising home 

prices, while good for homeowners and others 

involved with selling a home, can negatively 

impact affordability for first-time homebuyers. 

For too many lower- and middle-income 

families, affordable housing options are scarce 

and inequities persist in the housing economy. 

We look forward to continuing to work with 

FHFA and others to advance equitable and 

sustainable access to homeownership and 

affordable, quality rental housing for 

communities across America.” 

Hugh R. Frater, Chief Executive Officer

• Net worth increased to $42.2 billion as of September 30, 2021

• $312.7 billion in liquidity provided to the Single-Family and Multifamily 

mortgage markets in the third quarter of 2021

• $115.4 billion of Single-Family home purchase acquisitions in the third 

quarter of 2021 of which nearly 50% were for first-time homebuyers 

• 166,000 units of rental housing financed in the third quarter of 2021, more 

than 90% of which were affordable to families earning at or below 120% of 

area median income, providing support for both workforce and affordable 

housing

• Nearly 1.4 million single-family forbearance plans initiated to help 

borrowers since the onset of the COVID-19 pandemic; as of September 

30, 2021, approximately 1.2 million of these loans have exited 

forbearance, including approximately 727,000 through reinstatement or 

payoff, and approximately 359,000 through the company’s payment 

deferral option 

• Home price growth in the first nine months of 2021 was 16.0%, the highest 

nine-month growth rate in the history of Fannie Mae’s home price index

Q3 2021 Key Results

$42.2 Billion Net Worth $1.1 Trillion Supporting Housing Activity 

Increase of $4.8 billion in third quarter 2021 SF Home Purchases SF Refinancings MF Rental Units

 

$(3.7)B

$6.2B

$14.6B

$25.3B

$42.2B

2017 2018 2019 2020 Q3 2021

$570B $512B

$666B

$1.4T

$1.1T

2017 2018 2019 2020 Q3 YTD

2021

$4.8 Billion Net Income Single-Family SDQ Rate

Decrease of $2.3 billion compared with second quarter 2021 SDQ Rate SDQ Rate without Forbearances

 

$4.2B $4.6B $5.0B

$7.2B

$4.8B

Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

3.20%

2.87% 2.58%

2.08%

1.62%

0.65% 0.66% 0.66% 0.64% 0.72%

Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

Third Quarter 2021 Results 1
Summary of Financial Results

(Dollars in millions) Q321 Q221 Variance % Change Q320 Variance % Change

Net interest income $ 6,972 $ 8,286 $ (1,314) (16) % $ 6,656 316 5 %

Fee and other income 111 103 8 8 % 93 18 19 %

Net revenues 7,083 8,389 (1,306) (16) % 6,749 334 5 %

Investment gains, net 243 646 (403) (62) % 653 (410) (63) %

Fair value losses, net (17) (446) 429 96 % (327) 310 95 %

Administrative expenses (745) (746) 1 — % (762) 17 2 %

Credit-related income 868 2,547 (1,679) (66) % 430 438 102 %

Temporary Payroll Tax Cut Continuation 

Act of 2011 (TCCA) fees (781) (758) (23) (3) % (679) (102) (15) %

Other expenses, net* (543) (598) 55 9 % (686) 143 21 %

Income before federal income taxes 6,108 9,034 (2,926) (32) % 5,378 730 14 %

Provision for federal income taxes (1,266) (1,882) 616 33 % (1,149) (117) (10) %

Net income $ 4,842 $ 7,152 $ (2,310) (32) % $ 4,229 $ 613 14 %

Total comprehensive income $ 4,828 $ 7,120 $ (2,292) (32) % $ 4,216 $ 612 15 %

Net worth $ 42,173 $ 37,345 $ 4,828 13 % $ 20,693 $ 21,480 104 %

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

Financial Highlights 

• Net income decreased $2.3 billion in the third quarter of 2021 compared with the second quarter of 2021 driven primarily by 

a decrease in credit-related income and lower net interest income.

• Credit-related income decreased $1.7 billion in the third quarter of 2021 compared with the second quarter of 2021 driven 

primarily by a decrease in the volume of loan redesignations, less benefit from both actual and forecasted home price 

growth, and increases in interest rates. Credit-related income in the third quarter of 2021 was driven primarily by strong 

actual and forecasted home price growth and a reduction in the company’s estimate of losses it expects to incur as a result 

of the COVID-19 pandemic. 

• Net interest income decreased $1.3 billion in the third quarter of 2021 compared with the second quarter of 2021 driven 

primarily by a decrease in net amortization income. Single-family mortgage loan prepayment activity slowed in the third 

quarter of 2021 compared to the second quarter of 2021; however, refinancing activity remained strong due to the continued 

low interest-rate environment. 

• Strong earnings for the third quarter of 2021 support Fannie Mae’s continued efforts to build capital; however, the company 

remains significantly undercapitalized as of September 30, 2021.

Third Quarter 2021 Results 2
Single-Family Business Financial Results

(Dollars in millions) Q321 Q221 Variance % Change Q320 Variance % Change

Net interest income $ 5,870 $ 7,323 $ (1,453) (20) % $ 5,870 $ — — %

Fee and other income 86 80 6 8 % 73 13 18 %

Net revenues 5,956 7,403 (1,447) (20) % 5,943 13 — %

Investment gains, net 222 658 (436) (66) % 583 (361) (62) %

Fair value losses, net (31) (386) 355 92 % (244) 213 87 %

Administrative expenses (620) (619) (1) — % (634) 14 2 %

Credit-related income 807 2,525 (1,718) (68) % 478 329 69 %

Temporary Payroll Tax Cut Continuation 

Act of 2011 (TCCA) fees (781) (758) (23) (3) % (679) (102) (15) %

Other expenses, net* (463) (591) 128 22 % (629) 166 26 %

Income before federal income taxes 5,090 8,232 (3,142) (38) % 4,818 272 6 %

Provision for federal income taxes (1,065) (1,725) 660 38 % (1,049) (16) (2) %

Net income $ 4,025 $ 6,507 $ (2,482) (38) % $ 3,769 $ 256 7 %

Average charged guaranty fee on new 

conventional acquisitions, net of TCCA 47.3 bps 47.9 bps (0.6) bps (1) % 44.9 bps 2.4 bps 5 %

Average charged guaranty fee on 

conventional guaranty book of 

business, net of TCCA

45.4 bps 45.2 bps 0.2 bps — % 44.4 bps 1.0 bps 2 %

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

Key Business Highlights 

• Single-family conventional acquisition volume was $296.4 billion in the third quarter of 2021, compared with $373.3 billion in 

the second quarter of 2021. Purchase acquisitions decreased from $129.5 billion in the second quarter of 2021 to 

$115.4 billion in the third quarter of 2021, of which nearly 50% were for first-time homebuyers. Refinance acquisitions were 

$180.9 billion in the third quarter of 2021, a decline from $243.8 billion in the second quarter of 2021, but remained at a high 

level due to the continued low interest-rate environment. 

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

quarter of 2021 by 2.3%. Record home price appreciation in the first nine months of 2021 has reduced the weightedaverage mark-to-market loan-to-value ratio of our single-family conventional guaranty book of business to 54% as of 

September 30, 2021. The weighted average FICO credit score of the company’s single-family conventional guaranty book of 

business was 752 as of September 30, 2021.

• Average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book increased from 45.2

basis points for the three months ended June 30, 2021 to 45.4 basis points for the three months ended September 30, 

2021. Average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, decreased 0.6 

basis points compared with the second quarter of 2021. Removal of the adverse market refinance fee in August 2021 

contributed to the decrease.

• As of September 30, 2021, 1.2% of the single-family guaranty book of business based on loan count, or 206,293 loans, was 

in forbearance, the vast majority of which was related to the COVID-19 pandemic, compared with 1.8% as of June 30, 2021. 

Since the start of the pandemic, 81% of loans that entered forbearance have successfully exited.

• Single-family serious delinquency rate decreased to 1.62% as of September 30, 2021, from 2.08% as of June 30, 2021, 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 from 0.64% as of June 

30, 2021 to 0.72% as of September 30, 2021 primarily due to loans exiting forbearance without resolving their delinquency. 

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

Third Quarter 2021 Results 3
Multifamily Business Financial Results

(Dollars in millions) Q321 Q221 Variance % Change Q320 Variance % Change

Net interest income $ 1,102 $ 963 $ 139 14 % $ 786 $ 316 40 %

Fee and other income 25 23 2 9 % 20 5 25 %

Net revenues 1,127 986 141 14 % 806 321 40 %

Fair value gains (losses), net 14 (60) 74 NM (83) 97 NM

Administrative expenses (125) (127) 2 2 % (128) 3 2 %

Credit-related income (expenses) 61 22 39 177 % (48) 109 NM

Credit enhancement expense (59) (55) (4) (7) % (51) (8) (16) %

Change in expected credit enhancement 

recoveries (14) 13 (27) NM — (14) NM

Other income (expense), net 14 23 (9) (39) % 64 (50) (78) %

Income before federal income taxes 1,018 802 216 27 % 560 458 82 %

Provision for federal income taxes (201) (157) (44) (28) % (100) (101) (101) %

Net income $ 817 $ 645 $ 172 27 % $ 460 $ 357 78 %

Average charged guaranty fee rate on 

multifamily guaranty book of business 77.5 bps 76.8 bps 0.7 bps 1 % 73.3 bps 4.2 bps 6 %

NM - Not meaningful

Key Business Highlights 

• New multifamily business volume was $16.4 billion in the third quarter of 2021, resulting in $48.8 billion for the first nine 

months 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 specified affordable and underserved market segments, and 20% must be 

affordable to residents earning 60% of area median income or below. Multifamily business that meets the minimum 20% 

requirement also counts as meeting the minimum 50% requirement. In October 2021, FHFA announced that the multifamily 

loan purchase cap for 2022 will be $78 billion. As in 2021, a minimum of 50% of loan purchases must be mission-driven, 

focused on specified affordable and underserved market segments. In addition, 25% of loan purchases must be affordable 

to residents earning 60% or less of area median income, up from the 20% requirement in 2021.

• The multifamily guaranty book of business grew by $6.2 billion in the third quarter of 2021 to $408.1 billion. The average 

charged guaranty fee on the multifamily book increased from 76.8 basis points for the second quarter of 2021 to 77.5 basis 

points for the third quarter of 2021.

• Through September 30, 2021, 1.6% of our multifamily guaranty book of business as of March 31, 2020, based on unpaid 

principal balance, had been in a COVID-19-related forbearance at some point in time. As of September 30, 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. Only 0.1% of the multifamily book, or $362 million in 

unpaid principal balance, was still in active forbearance.

• The multifamily serious delinquency rate continued to decrease in the third quarter to 0.42% as of September 30, 2021 from 

0.53% as of June 30, 2021, driven primarily by the on-going economic recovery resulting in loans that received forbearance 

completing repayment plans or otherwise reinstating. The multifamily serious delinquency rate, excluding loans that 

received a forbearance, remained at 0.03% as of September 30, 2021. Multifamily seriously delinquent loans are loans that 

are 60 days or more past due. 

Third Quarter 2021 Results 4
Additional Matters

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

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

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

performance is contained in Fannie Mae’s “Q3 2021 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 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 people 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.

Third Quarter 2021 Results 5
ANNEX

FANNIE MAE

Condensed Consolidated Balance Sheets - (Unaudited)

(Dollars in millions)

As of

September 30, 

2021

December 31, 

2020

ASSETS

Cash and cash equivalents $ 67,377 $ 38,337 

Restricted cash and cash equivalents (includes $59,370 and $68,308, respectively, related to consolidated 

trusts) 66,087 77,286 

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

(includes $27,110 and $0, respectively, related to consolidated trusts) 27,610 28,200 

Investments in securities:

Trading, at fair value (includes $5,567 and $6,544, respectively, pledged as collateral) 97,209 136,542 

Available-for-sale, at fair value (with an amortized cost of $873 and $1,606, net of allowance for credit 

losses of $0 and $3 as of September 30, 2021 and December 31, 2020, respectively) 886 1,697 

Total investments in securities 98,095 138,239 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 7,489 5,197 

Loans held for investment, at amortized cost:

Of Fannie Mae 70,936 112,726 

Of consolidated trusts 3,831,578 3,546,521 

Total loans held for investment (includes $5,301 and 6,490, respectively, at fair value) 3,902,514 3,659,247 

Allowance for loan losses (6,334) (10,552) 

Total loans held for investment, net of allowance 3,896,180 3,648,695 

Total mortgage loans 3,903,669 3,653,892 

Advances to lenders 9,924 10,449 

Deferred tax assets, net 13,128 12,947 

Accrued interest receivable, net (includes $9,544 and $9,635, respectively, related to consolidated trusts and 

net of an allowance of $118 and $216 as of September 30, 2021 and December 31, 2020, respectively) 9,895 9,937 

Acquired property, net 1,261 1,261 

Other assets 12,163 15,201 

Total assets $ 4,209,209 $ 3,985,749 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $8,563 and $8,955, respectively, related to consolidated trusts) $ 9,299 $ 9,719 

Debt:

Of Fannie Mae (includes $2,633 and $3,728, respectively, at fair value) 234,843 289,572 

Of consolidated trusts (includes $23,020 and $24,586, respectively, at fair value) 3,907,626 3,646,164 

Other liabilities (includes $1,233 and $1,523, respectively, related to consolidated trusts) 15,268 15,035 

Total liabilities 4,167,036 3,960,490 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $158,844 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 (91,123) (108,110) 

Accumulated other comprehensive income 43 116 

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) 42,173 25,259 

Total liabilities and equity $ 4,209,209 $ 3,985,749 

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

Third 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 

September 30,

For the Nine Months 

Ended September 30,

2021 2020 2021 2020

Interest income:

Trading securities $ 134 $ 177 $ 396 $ 712 

Available-for-sale securities 11 19 48 76 

Mortgage loans 24,798 25,810 73,083 81,755 

Federal funds sold and securities purchased under agreements to resell or 

similar arrangements 5 14 17 135 

Other 33 33 106 92 

Total interest income 24,981 26,053 73,650 82,770 

Interest expense:

Short-term debt — (19) (4) (175) 

 Long-term debt (18,009) (19,378) (51,646) (64,815) 

Total interest expense (18,009) (19,397) (51,650) (64,990) 

Net interest income 6,972 6,656 22,000 17,780 

Benefit (provision) for credit losses 937 501 4,290 (2,094) 

Net interest income after benefit (provision) for credit losses 7,909 7,157 26,290 15,686 

Investment gains, net 243 653 934 644 

Fair value gains (losses), net (17) (327) 321 (1,621) 

Fee and other income 111 93 301 303 

Non-interest income (loss) 337 419 1,556 (674) 

Administrative expenses:

Salaries and employee benefits (376) (386) (1,128) (1,161) 

Professional services (184) (230) (582) (673) 

Other administrative expenses (185) (146) (529) (431) 

Total administrative expenses (745) (762) (2,239) (2,265) 

Foreclosed property expense (69) (71) (105) (161) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (781) (679) (2,270) (1,976) 

Credit enhancement expense (233) (325) (791) (1,061) 

Change in expected credit enhancement recoveries (42) (48) (117) 413 

Other expenses, net (268) (313) (867) (792) 

Total expenses (2,138) (2,198) (6,389) (5,842) 

Income before federal income taxes 6,108 5,378 21,457 9,170 

Provision for federal income taxes (1,266) (1,149) (4,470) (1,935) 

Net income 4,842 4,229 16,987 7,235 

Other comprehensive loss:

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

reclassification adjustments and taxes (10) (11) (64) (4) 

Other, net of taxes (4) (2) (9) (7) 

Total other comprehensive loss (14) (13) (73) (11) 

Total comprehensive income $ 4,828 $ 4,216 $ 16,914 $ 7,224 

Net income $ 4,842 $ 4,229 $ 16,987 $ 7,235 

Dividends distributed or amounts attributable to senior preferred stock (4,828) (4,216) (16,914) (7,224) 

Net income attributable to common stockholders $ 14 $ 13 $ 73 $ 11 

Earnings per share:

Basic $ 0.00 $ 0.00 $ 0.01 $ 0.00 

Diluted 0.00 0.00 0.01 0.00 

Weighted-average common shares outstanding:

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

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

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

Third Quarter 2021 Results 7