Despite a big uptick in acquisition volume, Fannie Mae income stays relatively flat in Q2

Fannie Mae recorded $4.5 billion in net income in the second quarter, pushing its net worth to $86.5 billion as of June 30.

Its net income was up only $164 million from the first quarter, despite a large uptick in purchases of single-family mortgages. Fannie Mae purchased $85.9 billion in single-family conventional loans in the second quarter of 2024, up from $62.3 billion in the first quarter, the company reported in its earnings presentation on Tuesday.

Purchase loan acquisition volume, of which approximately half was for first-time homebuyers, increased to $74.5 billion in Q2 2024, up from $53 billion in the prior quarter. And refinance acquisition volume ncreased to $11.4 billion, up from $9.3 billion in the first quarter.

The average single-family conventional guaranty book of business decreased by $6.4 billion between the first and second quarters, dropping to roughly $3.624 billion. This was driven by loan paydowns, liquidations, and sales that outpaced acquisition volumes during the quarter, the government-sponsored enterprise (GSE) said in its earnings report.

Fannie’s average single-family guaranty fee decreased to 51.9 basis points in the second quarter, down from 54.9 basis points in Q1 2024, primarily as a result of a shift in product mix and an improvement in credit profiles.

Its serious delinquency rate for single-family loans decreased from 0.48% to 0.51% during the same period.

Overall, net revenues at the GSE increased by $231 million year over year to $7.3 billion in Q2 2024, although net income decreased by $510 million. This was primarily driven by a decrease in benefit for credit losses on single-family mortgages.

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