Fannie Mae’s Earning Dropped This Quarter

Fannie Mae suffered a serious income decline for the third quarter of 2021, it slid down to $4.8 billion from $7.2 billion from Q2 to Q3.

The mortgage giant said the decline was majorly driven by a drop in credit-related income and lower net interest income.

In the third quarter, Fannie Mae’s overall net worth grew to $42.2 billion.

Hugh Frater CEO at Fannie Mae claims that in spite of the fall it was a strong quarter for them as they continue to build capital.

But they remain “significantly undercapitalized” in the third quarter admitted Fannie Mae in its release.

Frater added, though rising home prices are good for homeowners and sellers it has negatively impacted the affordability for many first-time homebuyers along with lower- and middle-income families, making it unaffordable for them leading to inequity in the housing economy.

They aim to continue working with FHFA and provide affordable homeownership and quality rental housing for Americans.

In Q3 their single-family acquisitions fell to $296.4 billion from $373.3 billion in Q2.

Similarly, this quarter the purchase acquisitions also dropped to $115.4 billion from $129.5 billion, of which nearly half were for first-time homebuyers. in the third quarter, Fannie’s refinance acquisitions also declined.

The GSEs average single-family conventional guaranty book of business rose by 2.3% this quarter.

https://www.compareclosing.com/mortgagenews/fannie-maes-earning-dropped-this-quarter/

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