Fannie, Freddie Report Steady Second-Quarter Financial Results
Written By: Joel Palmer, Op-Ed Writer
Fannie Mae and Freddie Mac are in a period of maintaining business levels, as they recently reported second quarter financials that were equivalent to the previous quarter and only slightly below the second quarter of 2023.
Fannie Mae announced financial results that included $4.5 billion in net income for the quarter, an increase of $164 million from the previous quarter and down about $500 million from the second quarter of 2023.
Fannie Mae President and CEO Priscilla Almodovar said the company had a strong quarter. The company’s current net worth of $86.5 billion demonstrates financial strength, while its capital position continues to improve.
“Half of our single-family purchase acquisitions this quarter were loans made to first-time homebuyers, demonstrating that today’s housing affordability pressures have not changed the desire to own a home,” said Almodovar. “That’s why managing risk and partnering with the industry to help consumers on their housing journeys remain top priorities.”
Fannie reported $95 billion in liquidity provided in the second quarter of 2024, which enabled the financing of approximately 330,000 home purchases, refinancings, and rental units. The company acquired approximately 213,000 single-family purchase loans and 45,000 single-family refinance loans, and financed 72,000 units of multifamily rental housing.
Single-family conventional acquisition volume was $85.9 billion in the second quarter, compared with $62.3 billion in the first quarter of 2024. Purchase acquisition volume, of which approximately half was for first-time homebuyers, increased to $74.5 billion in the second quarter from $53 billion in the first quarter. Refinance acquisition volume increased from $9.3 billion to $11.4 billion in the second quarter.
New multifamily business volume was $9.3 billion in the second quarter, down from $10.1 billion in the first quarter.
Freddie Mac reported net income of $2.8 billion for the quarter, nearly identical to its first-quarter net income and a decrease of 6 percent year-over-year. The second quarter profit increased its overall net worth to $53 billion.
The company reported $85 billion in single-family new business activity, a slight increase from $83 billion the year before. It financed 257,000 mortgages and enabled 103,000 first-time homebuyers to purchase a home, which was a slight decline from the second quarter of 2023. The breakdown was $74 billion in purchase loans and $11 in refinancing, compared with $73 billion and $10 billion, respectively, a year ago. Net income for the segment was down 4 percent to $2.3 billion.
Freddie’s multifamily segment had new business activity of $11 billion, down from $13 billion in the second quarter of 2023. The company provided financing for 92,000 multifamily rental units, with 65 percent going toward affordable to low-income families. Net income for the segment was $481 million, down 15 percent from a year ago.
“Freddie Mac continued to deliver steady results in a housing market characterized by relatively high mortgage rates and muted home sales. The company remains focused on helping families purchase or rent a place to call ‘home,” said Michael T. Hutchins, President and Interim Chief Executive Officer of Freddie Mac.
About the Author
As an NAMP® Opinion Editorial Contributor, Joel Palmer is a freelance writer who spent 10 years as a business and financial reporter and another 10 years in marketing for the insurance and financial services industries. He regularly writes about the mortgage industry, as well as residential and commercial real estate, investments, and retirement income planning. He has also ghostwritten books on starting a business, marketing, and retirement income planning.
