Despite
the
struggles
of
its
independent
mortgage
bank
counterparties,


Fannie
Mae
delivered
$4.3
billion
in
net
income
during
the
first
quarter
of
the
year,
up
from
$3.9
billion
in
the
prior
quarter,
the
government-sponsored
enterprise
(GSE)

reported
Tuesday.

The
GSE’s
net
worth
grew
from
$77.4
billion
at
the

end
of
2023
to
$82
billion
as
of
March
31.
Its
growth
was
“primarily
drive
by
a
shift
to
fair
value
gains
and
a
shift
to
a
benefit
for
credit
losses,
partially
offset
by
a
decrease
in
net
interest
income,”
Fannie
Mae
explained
in
a
statement
that
accompanied
its
financial
results.

“The
strength
of
the
U.S.
economy,
higher
single-family
home
prices,
and
the
credit
quality
of
our
book
of
business
continue
to
be
important
factors
affecting
our
performance,”
CEO
Priscilla
Almodovar
said
in
prepared
remarks,
noting
that
Fannie
Mae
delivered
a
profit
for
a
25th
consecutive
quarter.

“This
quarter,
we
provided
$72
billion
in
liquidity
to
the
U.S.
housing
market.
This
helped
280,000
households
buy,
refinance,
or
rent
a
home
and
reflects
our
strong
commitment
to
managing
risk
and
fulfilling
our
vital
role
supporting
America’s
housing
finance
system.”

The
GSE
remains
profitable
even
at
a
time
when
higher

mortgage
rates
have
led
to
a
precipitous
drop
in

home
sales
and

refinance
opportunities.

It
represents
a
contrast
to
many
of
its
counterparties.
Most
independent
mortgage
banks
haven’t
turned
a
profit

in
about
two
years
and
many
have
complained
bitterly
about
the
spate
of

loan
buyback
requests
by
the
GSEs.

At
the
height
of
the
post-pandemic
housing
boom,
Fannie
Mae
purchased
$1.4
trillion
in
loans
in
both
2020
and
2021.
The
$72
billion
in
financing
provided
during
the
first
three
months
of
this
year,
however,
puts
Fannie
on
pace
to
finish
below
last
year’s
level
of
$369
billion
in
single-family
and
multifamily
loan
purchases.

The
GSE
acquired
$62.3
billion
in
single-family
conventional
loans
during
the
first
three
months
of
this
year.
That
was
11%
below
the
$70.1
billion
it
acquired
in
Q4
2023.

It
acquired
roughly
155,000
single-family

purchase
loans
with
an
aggregate
value
of
$53
billion
in
the
first
quarter,
down
from
$61.7
billion
in
the
prior
quarter.
More
than
45%
of
these
loans
went
to
first-time
homebuyers.

Refinance
acquisition
volume,
however,
increased
from
$8.4
billion
to
$9.3
billion.

Fannie’s
single-family
conventional
guaranty
book
of
business
fell
to
$3.631
trillion
at
the
end
of
March,
down
$6.9
billion
from
the
end
of
December.
This
was
driven
by
liquidation
volume
outpacing
acquisition
volume
during
the
quarter.

The
credit
characteristics
of
its
single-family
portfolio
included
an
average
FICO
score
of
753
at
origination.
The
weighted
average
mark-to-market
loan-to-value
ratio
for
these
mortgages
was
51%.
And
the
portfolio’s
serious
delinquency
rate
(loans
at
least
90
days
past
due,
including
those
in
foreclosure)
declined
4
basis
points
to
0.51%
as
of
March
31.

Related