Fannie Mae Posts $3.3b Profit, Tops $100b Net Worth Despite Earnings Dip

Fannie Mae announced its second quarter 2025 earnings on Wednesday and reported net income of $3.3 billion, which marked the government-sponsored enterprise’s 30th consecutive quarter of positive earnings.

The company grew its net worth to $101.6 billion, representing $88.1 billion in net worth added since the start of 2020 and up from the first quarter’s reported figure of $98.3 billion.

During the GSE’s earnings call on Wednesday morning, Fannie Mae president and CEO Priscilla Almodovar said that Fannie’s $3.3 billion in net income is down 9% versus Q1 2025 and down 26% year over year. She attributed this to a higher provision for credit losses, which were a reported $946 million.

“Net revenues were $7.2 billion, up 2% versus the first quarter and relatively flat year on year,” Almodovar said. “Meanwhile, our focus on efficiency remains a top priority, and during the quarter, non-interest expenses were down over $250 million versus the prior quarter.

“Reflecting the progress on expenses, our efficiency ratio this quarter was 31.5%. This progress on expenses was greatly aided by the efficiency and deregulation efforts of Director (Bill) Pulte and the entire team at U.S. federal housing.”

Almodovar also touched on Fannie Mae’s impact throughout the quarter that ended June 30.

“Despite a sluggish spring homebuying season, we provided $102 billion of liquidity to the mortgage market. This helped 381,000 households, including 183,000 homebuyers, 52% of whom were first-time homebuyers,” she said.

“We also helped to keep over 25,000 households in their homes by offering various forms of assistance. Year-to-date, we have provided $178 billion of liquidity to the mortgage market and have helped 668,000 households buy, refinance, or rent a home in the U.S.”

Other achievements throughout the quarter included a fraud detection and prevention partnership with Palantir Technologies, surpassing $100 billion in total equity and ranking No. 25 in the 2025 Fortune 500.

The GSE also reduced its quarterly administrative expenses by 15% from the first quarter and 6% from a year earlier.

“Fannie Mae gets stronger by the day: We have achieved $100 billion in company net worth and our focus on operational efficiency has driven down administrative expenses 15% since the first quarter, with a total savings of $256 million in non-interest expenses,” Pulte said in a statement that accompanied the earnings release.

“We will continue operating the company as a for-profit enterprise so that we can drive down housing costs and deliver maximum value for the American people.”

Chief financial officer Chryssa Halley gave an in-depth look into the company’s financials.

“Our total assets have stayed relatively flat compared with the first quarter and year over year, as dynamics in the housing market continue the trend of fairly muted refinancing activity and new acquisitions coming in a bit short of portfolio run-off.

“… Our net worth has grown 18% in the last year, and in second quarter, we had a return on assets of 31 basis points and a return on risk-weighted assets of 1%,” Halley said.

Fannie Mae’s guaranty business, which drives its net interest income, has remained “fairly steady,” according to Halley.

Single-family and multifamily results

Single-family conventional mortgage acquisition volume totaled $84.1 billion, down slightly from $85.9 billion in Q2 2024. Purchase volume fell to $64.3 billion, down from $74.5 billion (with about half going to first-time homebuyers), while refinance volume rose to $19.8 billion from $11.4 billion a year ago.

The average single-family guaranty book shrank by $27.8 billion to $3.6 trillion. Credit quality remained solid, with a 50% loan-to-value ratio and an average FICO score of 753 at origination.

“The single-family guaranty book is relatively flat compared to comparable quarters, while second-quarter loan acquisitions of $84 billion improved from first-quarter levels due to seasonal trends and a slight uptick in refinance activity,” Halley said.

The company’s serious delinquency rate improved to 0.53%, down from 0.56% in Q1 2025. Guaranty fees continue to rise as the average fee on the overall book increased to 48.3 basis points (up from 47.6 bps in Q2 2024), while the fee on new acquisitions rose to 57.3 bps (up from 51.9 bps) due to a shift toward higher-risk, higher-fee loans and elevated base pricing.

Fannie Mae’s new multifamily business volume reached $17.4 billion in Q2 2025, up from $9.3 billion in Q2 2024. The multifamily guaranty book of business grew 6.4% year over year to $510.8 billion as of June 30.

The average guaranty fee on the multifamily book declined to 73.3 bps, down from 75.5 bps during the same period last year.

The multifamily serious delinquency rate improved slightly to 0.61% as of June 30, compared with 0.63% at the end of March. Serious delinquencies include loans 60 or more days past due.

The company recorded a $209 million provision for credit losses, primarily due to falling multifamily property values and new delinquencies during the quarter.