EX-99.1 2 fnma2022q2pressrelease.htm EX-99.1 Document
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Contact:     Pete Bakel      Resource Center: 1-800-232-6643
    202-752-2034                                     Exhibit 99.1
Date:    July 29, 2022                                         

Fannie Mae Reports Net Income of $4.7 Billion for Second Quarter 2022
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$4.7 billion net income for the second quarter of 2022, with net worth reaching $56.4 billion as of June 30, 2022
“Our solid second quarter results enhance our financial strength, and we remain focused on both managing risk and serving our mission to provide sustainable and affordable financing for the benefit of renters and homeowners.”

David C. Benson, President and Interim Chief Executive Officer
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$191 billion in liquidity provided to the single-family and multifamily mortgage markets in the second quarter of 2022
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$111 billion of single-family home purchase acquisitions in the second quarter of 2022, of which nearly 50% were for first-time homebuyers
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Acquired approximately 334,000 home purchase loans and 240,000 single-family refinance loans during the second quarter of 2022
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Approximately 156,000 units of rental housing financed in the second quarter of 2022, a significant majority of which were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing
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The average 30-year fixed-rate mortgage interest rate increased during the second quarter of 2022, from 4.67% as of March 31, 2022 to 5.70% as of June 30, 2022
Q2 2022 Key Results
$56.4 Billion Net Worth
$447 Billion Supporting Housing Activity
Increase of $4.6 billion in the second quarter of 2022
SF Home PurchasesSF RefinancingsMF Rental Units
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$4.7 Billion Net Income for Q2 2022
Serious Delinquency Rates
Increase of $245 million compared with first quarter 2022
Single-Family SDQ RateMultifamily SDQ Rate
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Second Quarter 2022 Results
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Summary of Financial Results
(Dollars in millions)Q222Q122Variance% ChangeQ221Variance% Change
Net interest income$7,808 $7,399 $409 6 %$8,286 $(478)(6)%
Fee and other income81 83 (2)(2)%103 (22)(21)%
Net revenues7,889 7,482 407 5 %8,389 (500)(6)%
Investment gains (losses), net(49)(102)53 52 %646 (695)NM
Fair value gains (losses), net529 480 49 10 %(446)975 NM
Administrative expenses(795)(808)13 2 %(746)(49)(7)%
Credit-related income (expense)(251)(201)(50)(25)%2,547 (2,798)NM
TCCA fees(841)(824)(17)(2)%(758)(83)(11)%
Credit enhancement expense(332)(278)(54)(19)%(274)(58)(21)%
Change in expected credit enhancement recoveries(47)60 (107)NM(44)(3)(7)%
Other expenses, net(228)(236)8 3 %(280)52 19 %
Income before federal income taxes5,875 5,573 302 5 %9,034 (3,159)(35)%
Provision for federal income taxes(1,222)(1,165)(57)(5)%(1,882)660 35 %
Net income$4,653 $4,408 $245 6 %$7,152 $(2,499)(35)%
Total comprehensive income$4,649 $4,401 $248 6 %$7,120 $(2,471)(35)%
Net worth$56,407 $51,758 $4,649 9 %$37,345 $19,062 51 %
NM - Not meaningful
Financial Highlights
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Net income increased $245 million in the second quarter of 2022, compared with the first quarter of 2022, driven primarily by an increase in net interest income.
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Net interest income was $7.8 billion dollars in the second quarter of 2022, compared with $7.4 billion in the first quarter of 2022.
◦Higher income earned on investments as a result of increases in interest rates during the quarter contributed to an increase in net interest income from the company’s retained mortgage portfolio and other investments portfolio.
◦Net interest income from the company’s guaranty book of business decreased slightly due to a decline in net amortization income driven by reduced refinancing activity, partially offset by higher base guaranty fee income.
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Credit-related expense was $251 million in the second quarter of 2022, compared with $201 million in the first quarter of 2022. Credit-related expense for the second quarter was driven in part by an increase in interest rates that was partially offset by home price growth.
◦Benefit from home price growth. While home price growth was strong in the second quarter of 2022, the positive impact on the company’s allowance was reduced by some recent market indicators that suggest home price growth may be moderating at a faster pace than the company anticipates.
◦Provision from interest rate increases. The rise in actual and projected interest rates in the second quarter of 2022 more than offset the benefit from home price growth. Increases in interest rates reduce the expected volume of loan prepayments and extend the expected life of previously modified loans accounted for as troubled debt restructurings, or TDRs, as it is less likely these loans will refinance.
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Second Quarter 2022 Results
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Single-Family Business Financial Results
(Dollars in millions)Q222Q122Variance% ChangeQ221Variance% Change
Net interest income$6,573 $6,255 $318 5 %$7,323 $(750)(10)%
Fee and other income60 61 (1)(2)%80 (20)(25)%
Net revenues6,633 6,316 317 5 %7,403 (770)(10)%
Investment gains (losses), net(27)(66)39 59 %658 (685)NM
Fair value gains (losses), net543 527 16 3 %(386)929 NM
Administrative expenses(671)(683)12 2 %(619)(52)(8)%
Credit-related income (expense)(231)(236)5 2 %2,525 (2,756)NM
TCCA fees(841)(824)(17)(2)%(758)(83)(11)%
Credit enhancement expense(270)(210)(60)(29)%(219)(51)(23)%
Change in expected credit enhancement recoveries(43)69 (112)NM(57)14 25 %
Other expenses, net(199)(198)(1)(1)%(315)116 37 %
Income before federal income taxes4,894 4,695 199 4 %8,232 (3,338)(41)%
Provision for federal income taxes(1,008)(986)(22)(2)%(1,725)717 42 %
Net income$3,886 $3,709 $177 5 %$6,507 $(2,621)(40)%
Average charged guaranty fee on new conventional acquisitions, net of TCCA fees51.7 bps48.9 bps2.8 bps6 %47.9 bps3.8 bps8 %
Average charged guaranty fee on conventional guaranty book of business, net of TCCA fees45.9 bps45.6 bps0.3 bps1 %45.2 bps0.7 bps2 %
NM - Not meaningful
Key Business Highlights
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Single-family conventional acquisition volume was $172.3 billion in the second quarter of 2022, a decrease of 28% compared with $239.5 billion in the first quarter of 2022. Purchase acquisition volume increased from $104.0 billion in the first quarter of 2022 to $111.0 billion in the second quarter of 2022, of which nearly 50% was for first-time homebuyers. Refinance acquisition volume was $61.3 billion in the second quarter of 2022, a decline from $135.5 billion in the first quarter of 2022, due to the higher mortgage interest rate environment.
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Average single-family conventional guaranty book of business in the second quarter of 2022 increased from the first quarter of 2022 by 1.9% driven primarily by growth in the average balance of loans acquired during the quarter. 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 50% and a weighted-average FICO credit score at origination of 753 as of June 30, 2022.
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Average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book increased to 45.9 basis points as of June 30, 2022. Average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, increased 2.8 basis points to 51.7 basis points for the second quarter of 2022, compared with 48.9 basis points for the first quarter of 2022.
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Single-family serious delinquency rate decreased to 0.81% as of June 30, 2022, from 1.01% as of March 31, 2022 driven by borrowers exiting forbearance through a loan workout or by otherwise reinstating their loan. Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process.

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Second Quarter 2022 Results
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Multifamily Business Financial Results
(Dollars in millions)Q222Q122Variance% ChangeQ221Variance% Change
Net interest income$1,235 $1,144 $91 8 %$963 $272 28 %
Fee and other income21 22 (1)(5)%23 (2)(9)%
Net revenues1,256 1,166 90 8 %986 270 27 %
Fair value losses, net(14)(47)33 70 %(60)46 77 %
Administrative expenses(124)(125)1 1 %(127)3 2 %
Credit-related income (expense)(20)35 (55)NM22 (42)NM
Credit enhancement expense(62)(68)6 9 %(55)(7)(13)%
Change in expected credit enhancement recoveries(4)(9)5 56 %13 (17)NM
Other income (expenses), net*(51)(74)23 31 %23 (74)NM
Income before federal income taxes981 878 103 12 %802 179 22 %
Provision for federal income taxes(214)(179)(35)(20)%(157)(57)(36)%
Net income$767 $699 $68 10 %$645 $122 19 %
Average charged guaranty fee rate on multifamily guaranty book of business, at period end79.5 bps79.3 bps0.2 bpsNM76.8 bps2.7 bps4 %
NM - Not meaningful
* Includes investment gains or losses and other income or expenses.
Key Business Highlights
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New multifamily business volume was $18.7 billion during the second quarter of 2022, compared with $16 billion during the first quarter of 2022. The Federal Housing Finance Agency (FHFA) established a 2022 multifamily volume cap of $78 billion, of which 50% must be mission-driven, focused on certain affordable and underserved market segments, and 25% affordable to residents earning 60% or less of area median income.
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The multifamily guaranty book of business grew by 1.4% in the second quarter of 2022 to $425.7 billion. The average charged guaranty fee on the multifamily book increased from 79.3 basis points as of March 31, 2022 to 79.5 basis points as of June 30, 2022.
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As of June 30, 2022, more than 95% 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.
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The multifamily serious delinquency rate decreased to 0.34% as of June 30, 2022, compared with 0.38% as of March 31, 2022, as recovery from COVID-19 continues. The multifamily serious delinquency rate, excluding loans that have received a forbearance since the start of the pandemic, remained at 0.03% as of June 30, 2022. Multifamily seriously delinquent loans are loans that are 60 days or more past due.
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Second Quarter 2022 Results
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Additional Matters
Fannie Mae’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income for the second quarter of 2022 are available in the accompanying Annex; however, investors and interested parties should read the company’s Second Quarter 2022 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 2022 Form 10-Q. Additional information about the company’s financial and credit performance is contained in Fannie Mae’s “Q2 2022 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 advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.
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Second Quarter 2022 Results
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ANNEX
FANNIE MAE
Condensed Consolidated Balance Sheets
(Dollars in millions)
As of
June 30, 2022December 31, 2021
ASSETS
Cash and cash equivalents$41,639 $42,448 
Restricted cash and cash equivalents (includes $28,346 and $59,203, respectively, related to consolidated trusts)34,303 66,183 
Securities purchased under agreements to resell (includes $13,391 and $13,533, respectively, related to consolidated trusts)15,391 20,743 
Investments in securities:
Trading, at fair value (includes $3,824 and $4,224, respectively, pledged as collateral)64,811 88,206 
Available-for-sale, at fair value (with an amortized cost of $764 and $827, respectively)765 837 
Total investments in securities65,576 89,043 
Mortgage loans:
 Loans held for sale, at lower of cost or fair value4,579 5,134 
Loans held for investment, at amortized cost:
Of Fannie Mae58,241 61,025 
Of consolidated trusts4,035,180 3,907,712 
 Total loans held for investment (includes $4,071 and $4,964, respectively, at fair value)4,093,421 3,968,737 
Allowance for loan losses(6,069)(5,629)
Total loans held for investment, net of allowance4,087,352 3,963,108 
Total mortgage loans4,091,931 3,968,242 
Advances to lenders4,622 8,414 
Deferred tax assets, net12,402 12,715 
Accrued interest receivable, net (includes $8,968 and $8,878 related to consolidated trusts and net of allowance of $89 and $140, respectively)9,565 9,264 
Acquired property, net1,485 1,259 
Other assets12,053 10,855 
Total assets$4,288,967 $4,229,166 
LIABILITIES AND EQUITY
Liabilities:
Accrued interest payable (includes $8,777 and $8,517, respectively, related to consolidated trusts)$9,355 $9,186 
Debt:
Of Fannie Mae (includes $1,866 and $2,381, respectively, at fair value)144,455 200,892 
Of consolidated trusts (includes $18,418 and $21,735, respectively, at fair value)4,064,192 3,957,299 
Other liabilities (includes $1,870 and $1,245, respectively, related to consolidated trusts)14,558 14,432 
Total liabilities4,232,560 4,181,809 
Commitments and contingencies (Note 13)— — 
Fannie Mae stockholders’ equity:
Senior preferred stock (liquidation preference of $173,257 and $163,672, respectively)120,836 120,836 
Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding19,130 19,130 
Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 1,158,087,567 shares outstanding687 687 
Accumulated deficit(76,873)(85,934)
Accumulated other comprehensive income27 38 
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)
56,407 47,357 
Total liabilities and equity$4,288,967 $4,229,166 




See Notes to Condensed Consolidated Financial Statements in the Second Quarter 2022 Form 10-Q

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FANNIE MAE
(In conservatorship)
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in millions, except per share amounts)

For the Three Months Ended June 30,For the Six Months Ended June 30,
2022202120222021
Interest income:
Trading securities$309 $122 $465 $262 
Available-for-sale securities9 18 19 37 
Mortgage loans29,082 24,932 56,224 48,285 
Securities purchased under agreements to resell
28 4 34 12 
Other27 31 53 73 
Total interest income29,455 25,107 56,795 48,669 
Interest expense:
Short-term debt(5)(1)(6)(4)
Long-term debt(21,642)(16,820)(41,582)(33,637)
Total interest expense(21,647)(16,821)(41,588)(33,641)
Net interest income7,808 8,286 15,207 15,028 
Benefit (provision) for credit losses(218)2,588 (458)3,353 
Net interest income after benefit (provision) for credit losses7,590 10,874 14,749 18,381 
Investment gains (losses), net(49)646 (151)691 
Fair value gains (losses), net529 (446)1,009 338 
Fee and other income81 103 164 190 
Non-interest income561 303 1,022 1,219 
Administrative expenses:
Salaries and employee benefits(398)(365)(805)(752)
Professional services(198)(184)(407)(398)
Other administrative expenses(199)(197)(391)(344)
Total administrative expenses(795)(746)(1,603)(1,494)
Foreclosed property income (expense)(33)(41)6 (36)
TCCA fees(841)(758)(1,665)(1,489)
Credit enhancement expense(332)(274)(610)(558)
Change in expected credit enhancement recoveries(47)(44)13 (75)
Other expenses, net(228)(280)(464)(599)
Total expenses(2,276)(2,143)(4,323)(4,251)
Income before federal income taxes5,875 9,034 11,448 15,349 
Provision for federal income taxes(1,222)(1,882)(2,387)(3,204)
Net income4,653 7,152 9,061 12,145 
Other comprehensive loss:
Changes in unrealized losses on available-for-sale securities, net of reclassification adjustments and taxes
(2)(31)(7)(54)
Other, net of taxes(2)(1)(4)(5)
Total other comprehensive loss(4)(32)(11)(59)
Total comprehensive income$4,649 $7,120 $9,050 $12,086 
Net income$4,653 $7,152 $9,061 $12,145 
Dividends distributed or amounts attributable to senior preferred stock
(4,649)(7,120)(9,050)(12,086)
Net income attributable to common stockholders$4 $32 $11 $59 
Earnings per share:
Basic$0.00 $0.01 $0.00 $0.01 
Diluted0.00 0.01 0.00 0.01 
Weighted-average common shares outstanding:
Basic5,867 5,867 5,867 5,867 
Diluted5,893 5,893 5,893 5,893 

See Notes to Condensed Consolidated Financial Statements in the Second Quarter 2022 Form 10-Q
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