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

 202-752-2034 

Date: August 3, 2021 

Fannie Mae Reports Net Income of $7.2 Billion for Second Quarter 2021

• $7.2 billion net income for the second quarter of 2021 compared with 

$5.0 billion for the first quarter of 2021

“Fannie Mae’s second quarter results 

demonstrate our ability to advance our mission, 

operate safely and soundly, and grow our 

capital. To meet our mission through business 

cycles, we must be safe and sound – and to be 

safe and sound, we need to have adequate 

capital. These priorities are the foundation for 

our work with our industry partners to address 

the nation’s long-term housing challenges, 

including housing affordability, supply, and 

equity.”

Hugh R. Frater, Chief Executive Officer

• Net worth increased to $37.3 billion as of June 30, 2021

• $384 billion in liquidity provided to the Single-Family and Multifamily 

mortgage markets in the second quarter of 2021

• $129.5 billion of Single-Family home purchase acquisitions, a record 

high, of which nearly 50% were for first-time homebuyers

• 128,000 units of rental housing financed, more than 90% affordable to 

families earning at or below 120% of area median income

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

borrowers since the onset of the COVID-19 pandemic; as of June 30, 

2021, approximately 1.1 million of these loans have exited forbearance, 

including approximately 659,000 through reinstatement or payoff, and 

approximately 323,000 through the company’s payment deferral option 

• Home price growth in the first half of 2021 was 10.5%, the highest sixmonth growth rate in the history of Fannie Mae’s home price index

Q2 2021 Key Results

$37.3 Billion Net Worth $806 Billion Supporting Housing Activity 

Increase of $7.1 billion in Q2 2021 SF Home Purchases SF Refinancings MF Rental Units

 

$(3.7)B

$6.2B

$14.6B

$25.3B

$37.3B

2017 2018 2019 2020 Q2 2021

$570B $512B

$666B

$1.4T

$806B

2017 2018 2019 2020 Q2 YTD

2021

$7.2 Billion Net Income Single-Family SDQ Rate

Increase of $2.2 billion compared with first quarter 2021 SDQ Rate SDQ Rate without Forbearances

 

$2.5B

$4.2B $4.6B $5.0B

$7.2B

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

2.65%

3.20%

2.87% 2.58%

2.08%

0.59% 0.65% 0.66% 0.66% 0.64%

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Second Quarter 2021 Results 1
Summary of Financial Results

(Dollars in millions) Q221 Q121 Variance % Change Q220 Variance % Change

Net interest income $ 8,286 $ 6,742 $ 1,544 23 % 5,777 2,509 43 %

Fee and other income 103 87 16 18 % 90 13 14 %

Net revenues 8,389 6,829 1,560 23 % 5,867 2,522 43 %

Investment gains, net 646 45 601 NM 149 497 NM

Fair value gains (losses), net (446) 784 (1,230) NM (1,018) 572 56 %

Administrative expenses (746) (748) 2 — % (754) 8 1 %

Credit-related income (expenses) 2,547 770 1,777 NM (22) 2,569 NM

Temporary Payroll Tax Cut Continuation 

Act of 2011 (TCCA) fees (758) (731) (27) 4 % (660) (98) 15 %

Other expenses, net* (598) (634) 36 (6) % (348) (250) 72 %

Income before federal income taxes 9,034 6,315 2,719 43 % 3,214 5,820 181 %

Provision for federal income taxes (1,882) (1,322) (560) 42 % (669) (1,213) 181 %

Net income $ 7,152 $ 4,993 $ 2,159 43 % $ 2,545 $ 4,607 181 %

Total comprehensive income $ 7,120 $ 4,966 $ 2,154 43 % $ 2,532 $ 4,588 181 %

Net worth $ 37,345 $ 30,225 $ 7,120 24 % $ 16,477 $ 20,868 127 %

NM - Not meaningful

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

Financial Highlights 

• Net income increased $2.2 billion in the second quarter of 2021 compared with the first quarter of 2021 driven primarily by 

an increase in credit-related income and higher net interest income, partially offset by a shift from fair value gains in the first 

quarter of 2021 to fair value losses in the second quarter of 2021.

• Credit-related income increased $1.8 billion in the second quarter of 2021 compared with the first quarter of 2021. Creditrelated income in the second quarter of 2021 was driven by higher actual and forecasted home prices, as well as an 

increase in the volume of redesignations of reperforming single-family mortgage loans from held-for-investment to held-for 

sale.

• Net interest income increased $1.5 billion in the second quarter of 2021 compared with the first quarter of 2021, driven 

primarily by an increase in net amortization income, particularly in the beginning of the second quarter. Single-family 

mortgage loan prepayment activity slowed some throughout the second quarter of 2021 compared to the first quarter of 

2021; however refinancing activity remained strong due to the continued low interest-rate environment. 

• Fair value losses were $446 million in the second quarter of 2021, compared with fair value gains of $784 million in the first 

quarter of 2021. The $1.2 billion shift from gains to losses was driven by a decrease in Treasury yields, which drove losses 

on commitments to sell securities and fair value debt as prices rose.

• Investment gains increased $601 million in the second quarter of 2021, driven by gains from the sale of single-family 

reperforming loans in the second quarter of 2021, compared with no such sales in the first quarter of 2021.

Second Quarter 2021 Results 2
Single-Family Business Financial Results

(Dollars in millions) Q221 Q121 Variance % Change Q220 Variance % Change

Net interest income $ 7,323 $ 5,894 $ 1,429 24 % $ 4,939 $ 2,384 48 %

Fee and other income 80 62 18 29 % 71 9 13 %

Net revenues 7,403 5,956 1,447 24 % 5,010 2,393 48 %

Investment gains, net 658 64 594 NM 96 562 NM

Fair value gains (losses), net (386) 740 (1,126) NM (1,030) 644 63 %

Administrative expenses (619) (623) 4 (1) % (625) 6 (1) %

Credit-related income 2,525 679 1,846 NM 216 2,309 NM

Temporary Payroll Tax Cut Continuation 

Act of 2011 (TCCA) fees (758) (731) (27) 4 % (660) (98) (15) %

Other expenses, net* (591) (529) (62) 12 % (351) (240) (68) %

Income before federal income taxes 8,232 5,556 2,676 48 % 2,656 5,576 NM

Provision for federal income taxes (1,725) (1,162) (563) 48 % (556) (1,169) NM

Net income $ 6,507 $ 4,394 $ 2,113 48 % $ 2,100 $ 4,407 NM

Average charged guaranty fee on new 

conventional acquisitions, net of TCCA 47.9 bps 48.0 bps (0.1) bps — % 46.7 bps 1.2 bps 3 %

Average charged guaranty fee on 

conventional guaranty book of 

business, net of TCCA

45.2 bps 44.9 bps 0.3 bps 1 % 44.2 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 $373.3 billion in the second quarter of 2021. Purchase acquisitions 

reached a record high of $129.5 billion, of which nearly 50% were for first-time homebuyers. Refinance acquisitions were 

$243.8 billion in the second quarter of 2021, a decline compared with the first quarter of 2021, but remaining at a high level 

due to the continued low interest-rate environment. 

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

quarter of 2021 by 2.7%. 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 55% and weighted-average FICO credit score of 752. 

• Average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book increased from 44.9

basis points for the three months ended March 31, 2021 to 45.2 basis points for the three months ended June 30, 2021. 

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

at 47.9 basis points. 

• As of June 30, 2021, 1.8% of the single-family guaranty book of business based on loan count, or 313,679 loans, was in 

forbearance, the vast majority of which was related to the COVID-19 pandemic, compared with 2.5% as of March 31, 2021. 

Since the start of the pandemic, 74% of loans that entered forbearance have successfully exited.

• Single-family serious delinquency rate decreased to 2.08% as of June 30, 2021, from 2.58% as of March 31, 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 decreased from 0.66% as of 

March 31, 2021 to 0.64% as of June 30, 2021. Single-family seriously delinquent loans are loans that are 90 days or more 

past due or in the foreclosure process.

Second Quarter 2021 Results 3
Multifamily Business Financial Results

(Dollars in millions) Q221 Q121 Variance % Change Q220 Variance % Change

Net interest income $ 963 $ 848 $ 115 14 % $ 838 $ 125 15 %

Fee and other income 23 25 (2) (8) % 19 4 21 %

Net revenues 986 873 113 13 % 857 129 15 %

Fair value gains (losses), net (60) 44 (104) NM 12 (72) NM

Administrative expenses (127) (125) (2) 2 % (129) 2 (2) %

Credit-related income (expenses) 22 91 (69) (76) % (238) 260 NM

Credit enhancement expense (55) (58) 3 (5) % (53) (2) 4 %

Change in expected credit enhancement 

recoveries 13 (15) 28 NM 65 (52) (80) %

Other income (expense), net 23 (51) 74 NM 44 (21) (48) %

Income before federal income taxes 802 759 43 6 % 558 244 44 %

Provision for federal income taxes (157) (160) 3 (2) % (113) (44) 39 %

Net income $ 645 $ 599 $ 46 8 % $ 445 $ 200 45 %

Average charged guaranty fee rate on 

multifamily guaranty book of business, 

at end of period

76.8 bps 75.9 bps 0.9 bps 1 % 72.3 bps 4.5 bps 6 %

Key Business Highlights 

• New multifamily business volume was $10.9 billion in the second quarter of 2021, resulting in $32.4 billion for the first half 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% or less of area median income. 

• The multifamily guaranty book of business grew by $2.8 billion in the second quarter of 2021 to $401.9 billion. The average 

charged guaranty fee on the multifamily book increased from 75.9 basis points for the first quarter of 2021 to 76.8 basis 

points for the second quarter of 2021 as a result of higher pricing on acquisitions. This resulted in an increase in guaranty 

fee revenue, which drove the increase in net interest income for the quarter.

• As of June 30, 2021, based on unpaid principal balance, 1.2% 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 70% of those loans, measured by unpaid principal balance, were in a repayment plan or reinstated 

and only 0.2% of the book, or $1.0 billion in unpaid principal balance, was still in active forbearance as of June 30, 2021.

• The multifamily serious delinquency rate continued to decrease in the second quarter to 0.53% as of June 30, 2021 from 

0.66% as of March 31, 2021, driven primarily by the on-going economic recovery resulting in loans that received 

forbearance finishing repayment plans or otherwise reinstating. The multifamily serious delinquency rate excluding loans 

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

that are 60 days or more past due. 

Second Quarter 2021 Results 4
Additional Matters

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

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

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

credit performance is contained in Fannie Mae’s “Q2 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 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.

Second Quarter 2021 Results 5
ANNEX

FANNIE MAE

Condensed Consolidated Balance Sheets - (Unaudited)

(Dollars in millions)

As of

June 30, 

2021

December 31, 

2020

ASSETS

Cash and cash equivalents $ 48,879 $ 38,337 

Restricted cash and cash equivalents (includes $68,777 and $68,308, respectively, related to 

consolidated trusts) 76,420 77,286 

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

(includes $17,775 and $0, respectively, related to consolidated trusts) 43,888 28,200 

Investments in securities:

Trading, at fair value (includes $6,186 and $6,544, respectively, pledged as collateral) 95,101 136,542 

Available-for-sale, at fair value (with an amortized cost of $932 and $1,606, net of allowance for credit 

losses of $3 as of June 30, 2021 and December 31, 2020) 955 1,697 

Total investments in securities 96,056 138,239 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 6,933 5,197 

Loans held for investment, at amortized cost:

Of Fannie Mae 81,363 112,726 

Of consolidated trusts 3,770,125 3,546,521 

Total loans held for investment (includes $5,616 and 6,490, respectively, at fair value) 3,851,488 3,659,247 

Allowance for loan losses (7,114) (10,552) 

Total loans held for investment, net of allowance 3,844,374 3,648,695 

Total mortgage loans 3,851,307 3,653,892 

Advances to lenders 6,257 10,449 

Deferred tax assets, net 12,575 12,947 

Accrued interest receivable, net (includes $9,821 and $9,635, respectively, related to consolidated trusts 

and net of an allowance of $168 and $216 as of June 30, 2021 and December 31, 2020, respectively) 10,169 9,937 

Acquired property, net 1,138 1,261 

Other assets 11,349 15,201 

Total assets $ 4,158,038 $ 3,985,749 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $8,653 and $8,955, respectively, related to consolidated trusts) $ 9,374 $ 9,719 

Debt:

Of Fannie Mae (includes $2,946 and $3,728, respectively, at fair value) 251,576 289,572 

Of consolidated trusts (includes $22,972 and $24,586, respectively, at fair value) 3,844,699 3,646,164 

Other liabilities (includes $1,325 and $1,523, respectively, related to consolidated trusts) 15,044 15,035 

Total liabilities 4,120,693 3,960,490 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $151,724 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 (95,965) (108,110) 

Accumulated other comprehensive income 57 116 

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) 37,345 25,259 

Total liabilities and equity $ 4,158,038 $ 3,985,749 

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

Second 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 June 30,

For the Six Months 

Ended June 30,

2021 2020 2021 2020

Interest income:

Trading securities $ 122 $ 219 $ 262 $ 535 

Available-for-sale securities 18 26 37 57 

Mortgage loans 24,932 27,007 48,285 55,945 

Federal funds sold and securities purchased under agreements to resell or 

similar arrangements 4 14 12 121 

Other 31 25 73 59 

Total interest income 25,107 27,291 48,669 56,717 

Interest expense:

Short-term debt (1) (54) (4) (156) 

 Long-term debt (16,820) (21,460) (33,637) (45,437) 

Total interest expense (16,821) (21,514) (33,641) (45,593) 

Net interest income 8,286 5,777 15,028 11,124 

Benefit (provision) for credit losses 2,588 (12) 3,353 (2,595) 

Net interest income after benefit (provision) for credit losses 10,874 5,765 18,381 8,529 

Investment gains (losses), net 646 149 691 (9) 

Fair value gains (losses), net (446) (1,018) 338 (1,294) 

Fee and other income 103 90 190 210 

Non-interest loss 303 (779) 1,219 (1,093) 

Administrative expenses:

Salaries and employee benefits (365) (382) (752) (775) 

Professional services (184) (231) (398) (443) 

Other administrative expenses (197) (141) (344) (285) 

Total administrative expenses (746) (754) (1,494) (1,503) 

Foreclosed property expense (41) (10) (36) (90) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (758) (660) (1,489) (1,297) 

Credit enhancement expense (274) (360) (558) (736) 

Change in expected credit enhancement recoveries (44) 273 (75) 461 

Other expenses, net (280) (261) (599) (479) 

Total expenses (2,143) (1,772) (4,251) (3,644) 

Income before federal income taxes 9,034 3,214 15,349 3,792 

Provision for federal income taxes (1,882) (669) (3,204) (786) 

Net income 7,152 2,545 12,145 3,006 

Other comprehensive income (loss):

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

reclassification adjustments and taxes (31) (11) (54) 7 

Other, net of taxes (1) (2) (5) (5) 

Total other comprehensive income (loss) (32) (13) (59) 2 

Total comprehensive income $ 7,120 $ 2,532 $ 12,086 $ 3,008 

Net income $ 7,152 $ 2,545 $ 12,145 $ 3,006 

Dividends distributed or amounts attributable to senior preferred stock (7,120) (2,532) (12,086) (3,008) 

Net income (loss) attributable to common stockholders $ 32 $ 13 $ 59 $ (2) 

Earnings per share:

Basic $ 0.01 $ 0.00 $ 0.01 $ 0.00 

Diluted 0.01 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 5,867 

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

Second Quarter 2021 Results 7