EX-99.1 2 fnma2022q3pressrelease.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:    November 8, 2022                                         

Fannie Mae Reports Net Income of $2.4 Billion for Third Quarter 2022
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$2.4 billion net income for the third quarter of 2022, with net worth reaching $58.8 billion as of September 30, 2022
“Our third quarter results reflect the changing conditions in today’s housing market, and in this environment we continue to focus on being a stable pillar for the market, managing risk, and supporting renters and homeowners.”

David C. Benson, President and Interim Chief Executive Officer

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Net income decreased $2.2 billion in the third quarter of 2022 compared with the second quarter of 2022. The largest driver of this decrease was an increase in credit-related expense. Credit-related expense for the third quarter was primarily driven by lower actual and projected home prices.
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$134 billion in liquidity provided to the single-family and multifamily mortgage markets in the third quarter of 2022
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$92 billion of single-family home purchase acquisitions in the third quarter of 2022, more than 45% were for first-time homebuyers
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Acquired approximately 285,000 home purchase loans and 99,000 single-family refinance loans during the third quarter of 2022
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Approximately 143,000 units of rental housing financed in the third 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 U.S. weekly average 30-year fixed-rate mortgage rate increased from 5.70% as of the end of the second quarter of 2022 to 6.70% as of the end of the third quarter of 2022
Q3 2022 Key Results
$58.8 Billion Net Worth
$580 Billion Supporting Housing Activity
Increase of $2.4 billion in the third quarter of 2022
SF Home PurchasesSF RefinancingsMF Rental Units
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$2.4 Billion Net Income for Q3 2022
Serious Delinquency Rates
Decrease of $2.2 billion compared with second quarter 2022
Single-Family SDQ RateMultifamily SDQ Rate
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Third Quarter 2022 Results
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Summary of Financial Results
(Dollars in millions)Q322Q222Variance% ChangeQ321Variance% Change
Net interest income$7,124 $7,808 $(684)(9)%$6,972 $152 2 %
Fee and other income105 81 24 30 %111 (6)(5)%
Net revenues7,229 7,889 (660)(8)%7,083 146 2 %
Investment gains (losses), net(172)(49)(123)NM243 (415)NM
Fair value gains (losses), net292 529 (237)(45)%(17)309 NM
Administrative expenses(870)(795)(75)(9)%(745)(125)(17)%
Credit-related income (expense)(2,521)(251)(2,270)NM868 (3,389)NM
TCCA fees(850)(841)(9)(1)%(781)(69)(9)%
Credit enhancement expense(364)(332)(32)(10)%(233)(131)(56)%
Change in expected credit enhancement recoveries290 (47)337 NM(42)332 NM
Other expenses, net(169)(228)59 26 %(268)99 37 %
Income before federal income taxes2,865 5,875 (3,010)(51)%6,108 (3,243)(53)%
Provision for federal income taxes(429)(1,222)793 65 %(1,266)837 66 %
Net income$2,436 $4,653 $(2,217)(48)%$4,842 $(2,406)(50)%
Total comprehensive income$2,433 $4,649 $(2,216)(48)%$4,828 $(2,395)(50)%
Net worth$58,840 $56,407 $2,433 4 %$42,173 $16,667 40 %
NM - Not meaningful
Financial Highlights
Net income decreased $2.2 billion in the third quarter of 2022, compared with the second quarter of 2022, primarily driven by an increase in credit-related expense and a decrease in net interest income.
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Credit-related expense was $2.5 billion in the third quarter of 2022, compared with $251 million in the second quarter of 2022. Credit-related expense for the third quarter was primarily driven by lower actual and projected home prices during the quarter.
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Net interest income was $7.1 billion in the third quarter of 2022, compared with $7.8 billion in the second quarter of 2022. Net interest income from the company’s guaranty book of business decreased due to a decline in net amortization income driven by a decrease in refinancing activity due to rising interest rates.
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Third Quarter 2022 Results
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Single-Family Business Financial Results
(Dollars in millions)Q322Q222Variance% ChangeQ321Variance% Change
Net interest income$5,918 $6,573 $(655)(10)%$5,870 $48 1 %
Fee and other income83 60 23 38 %86 (3)(3)%
Net revenues6,001 6,633 (632)(10)%5,956 45 1 %
Investment gains (losses), net(178)(27)(151)NM222 (400)NM
Fair value gains (losses), net309 543 (234)(43)%(31)340 NM
Administrative expenses(730)(671)(59)(9)%(620)(110)(18)%
Credit-related income (expense)(2,367)(231)(2,136)NM807 (3,174)NM
TCCA fees(850)(841)(9)(1)%(781)(69)(9)%
Credit enhancement expense(298)(270)(28)(10)%(174)(124)(71)%
Change in expected credit enhancement recoveries245 (43)288 NM(28)273 NM
Other expenses, net(159)(199)40 20 %(261)102 39 %
Income before federal income taxes1,973 4,894 (2,921)(60)%5,090 (3,117)(61)%
Provision for federal income taxes(276)(1,008)732 73 %(1,065)789 74 %
Net income$1,697 $3,886 $(2,189)(56)%$4,025 $(2,328)(58)%
Average charged guaranty fee on new conventional acquisitions, net of TCCA fees53.3 bps51.7 bps1.6 bps3 %47.3 bps6.0 bps13 %
Average charged guaranty fee on conventional guaranty book of business, net of TCCA fees46.2 bps45.9 bps0.3 bps1 %45.4 bps0.8 bps2 %
NM - Not meaningful
Key Business Highlights
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Single-family conventional acquisition volume was $117.7 billion in the third quarter of 2022, a decrease of 32% compared with $172.3 billion in the second quarter of 2022. Purchase acquisition volume decreased from $111.0 billion in the second quarter of 2022 to $92.2 billion in the third quarter of 2022, of which more than 45% was for first-time homebuyers. Refinance acquisition volume was $25.5 billion in the third quarter of 2022, a decline from $61.3 billion in the second 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 third quarter of 2022 increased from the second quarter of 2022 by 0.9% 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 752 as of September 30, 2022.
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Single-family serious delinquency rate decreased to 0.69% as of September 30, 2022, from 0.81% as of June 30, 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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Third Quarter 2022 Results
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Multifamily Business Financial Results
(Dollars in millions)Q322Q222Variance% ChangeQ321Variance% Change
Net interest income$1,206 $1,235 $(29)(2)%$1,102 $104 9 %
Fee and other income22 21 1 5 %25 (3)(12)%
Net revenues1,228 1,256 (28)(2)%1,127 101 9 %
Fair value gains (losses), net(17)(14)(3)(21)%14 (31)NM
Administrative expenses(140)(124)(16)(13)%(125)(15)(12)%
Credit-related income (expense)(154)(20)(134)NM61 (215)NM
Credit enhancement expense(66)(62)(4)(6)%(59)(7)(12)%
Change in expected credit enhancement recoveries45 (4)49 NM(14)59 NM
Other income (expenses), net*(4)(51)47 92 %14 (18)NM
Income before federal income taxes892 981 (89)(9)%1,018 (126)(12)%
Provision for federal income taxes(153)(214)61 29 %(201)48 24 %
Net income$739 $767 $(28)(4)%$817 $(78)(10)%
Average charged guaranty fee rate on multifamily guaranty book of business, at period end79.0 bps79.5 bps(0.5) bpsNM77.5 bps1.5 bps2 %
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 $15.9 billion during the third quarter of 2022, compared with $18.7 billion during the second quarter of 2022. During the first nine months of 2022, new multifamily business volume was $50.6 billion. 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 0.9% in the third quarter of 2022 to $429.4 billion. The average charged guaranty fee on the multifamily book decreased from 79.5 basis points as of June 30, 2022, to 79.0 basis points as of September 30, 2022, but increased from 77.5 basis points from September 30, 2021.
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As of September 30, 2022, more than 95% of the loans in the company’s active 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 0.26% as of September 30, 2022, compared with 0.34% as of June 30, 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, was 0.04% as of September 30, 2022. Multifamily seriously delinquent loans are loans that are 60 days or more past due.
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Additional Matters
Fannie Mae’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income for the third quarter of 2022 are available in the accompanying Annex; however, investors and interested parties should read the company’s Third 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 Third Quarter 2022 Form 10-Q. Additional information about the company’s financial and credit performance is contained in Fannie Mae’s “Q3 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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Third Quarter 2022 Results
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ANNEX
FANNIE MAE
(In conservatorship)
Condensed Consolidated Balance Sheets — (Unaudited)
(Dollars in millions)
As of
September 30, 2022December 31, 2021
ASSETS
Cash and cash equivalents$35,640 $42,448 
Restricted cash and cash equivalents (includes $21,863 and $59,203, respectively, related to consolidated trusts)27,921 66,183 
Securities purchased under agreements to resell (includes $13,150 and $13,533, respectively, related to consolidated trusts)23,950 20,743 
Investments in securities:
Trading, at fair value (includes $3,275 and $4,224, respectively, pledged as collateral)58,253 88,206 
Available-for-sale, at fair value (with an amortized cost of $744 and $827, respectively)741 837 
Total investments in securities58,994 89,043 
Mortgage loans:
 Loans held for sale, at lower of cost or fair value4,177 5,134 
Loans held for investment, at amortized cost:
Of Fannie Mae49,952 61,025 
Of consolidated trusts4,058,901 3,907,712 
 Total loans held for investment (includes $3,691 and $4,964, respectively, at fair value)4,108,853 3,968,737 
Allowance for loan losses(8,302)(5,629)
Total loans held for investment, net of allowance4,100,551 3,963,108 
Total mortgage loans4,104,728 3,968,242 
Advances to lenders3,443 8,414 
Deferred tax assets, net12,729 12,715 
Accrued interest receivable, net (includes $8,902 and $8,878 related to consolidated trusts and net of allowance of $112 and $140, respectively)9,478 9,264 
Acquired property, net1,539 1,259 
Other assets11,031 10,855 
Total assets$4,289,453 $4,229,166 
LIABILITIES AND EQUITY
Liabilities:
Accrued interest payable (includes $9,040 and $8,517, respectively, related to consolidated trusts)$9,650 $9,186 
Debt:
Of Fannie Mae (includes $1,766 and $2,381, respectively, at fair value)129,776 200,892 
Of consolidated trusts (includes $16,758 and $21,735, respectively, at fair value)4,078,038 3,957,299 
Other liabilities (includes $1,812 and $1,245, respectively, related to consolidated trusts)13,149 14,432 
Total liabilities4,230,613 4,181,809 
Commitments and contingencies (Note 13)— — 
Fannie Mae stockholders’ equity:
Senior preferred stock (liquidation preference of $177,906 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(74,437)(85,934)
Accumulated other comprehensive income24 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)
58,840 47,357 
Total liabilities and equity$4,289,453 $4,229,166 




See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2022 Form 10-Q
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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 September 30,For the Nine Months Ended September 30,
2022202120222021
Interest income:
Trading securities$515 $134 $980 $396 
Available-for-sale securities10 11 29 48 
Mortgage loans30,114 24,798 86,338 73,083 
Securities purchased under agreements to resell
171 5 205 17 
Other40 33 93 106 
Total interest income30,850 24,981 87,645 73,650 
Interest expense:
Short-term debt(17)— (23)(4)
Long-term debt(23,709)(18,009)(65,291)(51,646)
Total interest expense(23,726)(18,009)(65,314)(51,650)
Net interest income7,124 6,972 22,331 22,000 
Benefit (provision) for credit losses(2,536)937 (2,994)4,290 
Net interest income after benefit (provision) for credit losses4,588 7,909 19,337 26,290 
Investment gains (losses), net(172)243 (323)934 
Fair value gains (losses), net292 (17)1,301 321 
Fee and other income105 111 269 301 
Non-interest income225 337 1,247 1,556 
Administrative expenses:
Salaries and employee benefits(439)(376)(1,244)(1,128)
Professional services(229)(184)(636)(582)
Other administrative expenses(202)(185)(593)(529)
Total administrative expenses(870)(745)(2,473)(2,239)
Foreclosed property income (expense)15 (69)21 (105)
TCCA fees(850)(781)(2,515)(2,270)
Credit enhancement expense(364)(233)(974)(791)
Change in expected credit enhancement recoveries290 (42)303 (117)
Other expenses, net(169)(268)(633)(867)
Total expenses(1,948)(2,138)(6,271)(6,389)
Income before federal income taxes2,865 6,108 14,313 21,457 
Provision for federal income taxes(429)(1,266)(2,816)(4,470)
Net income2,436 4,842 11,497 16,987 
Other comprehensive loss:
Changes in unrealized losses on available-for-sale securities, net of reclassification adjustments and taxes
(1)(10)(8)(64)
Other, net of taxes(2)(4)(6)(9)
Total other comprehensive loss(3)(14)(14)(73)
Total comprehensive income$2,433 $4,828 $11,483 $16,914 
Net income$2,436 $4,842 $11,497 $16,987 
Dividends distributed or amounts attributable to senior preferred stock
(2,433)(4,828)(11,483)(16,914)
Net income attributable to common stockholders$3 $14 $14 $73 
Earnings per share:
Basic$0.00 $0.00 $0.00 $0.01 
Diluted0.00 0.00 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 Third Quarter 2022 Form 10-Q
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