Fannie Mae Q2 net income hits $4B

Fannie Mae reported $4 billion in net income during the second quarter of 2026, a 7% increase from the prior quarter and a 20% increase from a year earlier, as higher revenue offset an increase in its provision for credit losses.

The government-sponsored enterprise said in its Wednesday morning earnings call that net income rose from $3.7 billion in the first quarter and $3.3 billion in the second quarter of 2025. Net worth increased to $116.5 billion as of June 30, up from $112.7 billion at the end of the first quarter.

Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and chairman of Fannie Mae’s board, said that the GSE’s continued net worth and earnings report “shows the company’s continued stability and growth, all while reaching $3 billion in estimated homeowner savings since 2018 through innovative appraisal alternatives.”

Net revenue increased 4% from the previous quarter to $7.6 billion, driven primarily by higher net interest income from Fannie Mae’s portfolios and increased deferred guaranty fee income. Lower noninterest expenses and a shift from investment losses to gains also contributed to the increase in earnings, the company said.

Those gains were partially offset by a higher credit loss provision and a shift from fair-value gains to losses.

Fannie Mae’s provision for credit losses increased to $485 million in the second quarter from $277 million in the first quarter. The company said the increase included higher provisions in both its single-family and multifamily businesses.

Ongoing multifamily market challenges expected

The GSE’s multifamily allowance increased by $102 million. The company recorded a $259 million provision for multifamily credit losses, which Chief Financial Officer Chryssa C. Halley said was primarily driven by weaker property valuations, slower net operating income growth and loans that became seriously delinquent.

“Looking ahead, we expect ongoing multifamily market challenges to result in additional delinquencies,” Halley said during the earnings call.

Single-family net income rose to $3.3 billion from $3.2 billion in the first quarter. Conventional acquisition volume increased to $111.2 billion from $98.7 billion, driven by higher purchase activity, while refinance acquisition volume declined.

“Stronger single-family housing activity during the spring buying season delivered $111 billion in second quarter acquisitions, our highest volume since the third quarter of 2022,” Halley said. “Compared to the first quarter, refinance activity slowed as mortgage rates moved higher during the second quarter, whereas purchase acquisitions increased.”

The company’s single-family serious delinquency rate remained unchanged at 0.58% at the end of the second quarter. Its single-family credit loss provision increased to $226 million from $103 million in the previous quarter, primarily due to new acquisitions, newly delinquent loans and the redesignation of certain loans as held for sale.

Multifamily net income increased 29% from the first quarter to $704 million. Multifamily acquisition volume declined to $14.2 billion from $17.1 billion, while the multifamily guaranty book grew to $544.6 billion.

The multifamily serious delinquency rate declined to 0.60% from 0.78% in the first quarter. Fannie Mae attributed the decrease primarily to the modification of a loan portfolio that had previously been in forbearance, as well as foreclosure activity.

The company provided $125 billion in mortgage market liquidity during the quarter, supporting approximately 417,000 home purchases, refinances and rental units. That included nearly 110,000 first-time homebuyers, according to Fannie Mae.

“The strength of our core guaranty business and financial discipline enabled us to deliver another quarter of solid earnings and real impact,” Peter Akwaboah, Fannie Mae’s acting CEO and chief operating officer, said in a statement.

Fannie Mae said its foreclosure-prevention programs enabled more than 21,000 homeowners to remain in their homes during the quarter. The company also said its appraisal alternatives have generated an estimated $3 billion in borrower closing-cost savings since 2018.