Q2 2024 Federal National Mortgage Association Earnings Call Transcript
Key Points
- Federal National Mortgage Association Fannie Mae (FNMA) reported a net income of $4.5 billion in the second quarter, an increase from $4.3 billion in the first quarter.
- The company's net worth reached $86.5 billion, indicating strengthened financial stability.
- FNMA provided $95 billion of liquidity to the single-family and multifamily markets, assisting 330,000 households in buying, refinancing, or renting a home.
- The credit profile of FNMA's single-family acquisitions remained healthy, with a weighted average original loan-to-value ratio of 78% and a weighted average credit score of 759.
- FNMA continues to innovate by issuing over $5 billion in single-family social bonds and over $4 billion in multifamily social bonds, supporting affordable housing and underserved markets.
- Affordability concerns and low inventory of homes for sale are limiting the number of buyers willing and able to purchase a home.
- The multifamily market is experiencing a decline in property values, with a nearly 20% drop from the peak in July 2022 to June 2024.
- FNMA's multifamily acquisitions decreased, reflecting low overall market volumes and increased competition.
- The multifamily serious delinquency rate is expected to increase due to a portfolio of adjustable-rate conventional loans anticipated to become seriously delinquent.
- The economic outlook remains uncertain, with expectations of continued high interest rates and subdued multifamily sales activity in the near term.
Good day, and welcome to the Fannie Mae second quarter 2024 financial results conference call. At this time, I will now turn it over to your host, Pete Bakel, Fannie Mae's Director of External Communications.
Hello, and thank you all for joining today's conference call to discuss Fannie Mae's second quarter 2024 financial results. Please note this call includes forward-looking statements, including statements about Fannie Mae's expectations related to economic and housing market conditions, the future performance of the company's book of business, and the company's business plans and their impact.
Future events may turn out to be very different from these statements. The forward-looking statements section in the company's second quarter 2024 Form 10-Q filed today and in the Risk Factors and Forward-Looking Statements sections in the company's 2023 Form 10-K filed on February 15, 2024, describe factors that may lead to different results. A recording of this call may be
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