GSEs Report Solid Q2 Earnings

Fannie Mae and Freddie Mac reported financial results for the second quarter on Thursday, with Fannie notching net income of $2.5 billion and Freddie recording $1.9 billion. Both companies reported significantly higher net worth as of June 30.

Here are the details:

Fannie Mae

Fannie Mae reported net income of $2.5 billion for the second quarter of 2020, compared with net income of $461 million for the first quarter of 2020 – due primarily to a decline in credit-related expense in the second quarter of 2020 compared with the first quarter of 2020. 

Fannie Mae’s net worth increased from $13.9 billion as of March 31, 2020 to $16.5 billion as of June 30, 2020.

Fannie Mae provided $542 billion in single-family liquidity to the mortgage market in the first half of 2020, including $288 billion through its whole loan conduit, enabling the financing of approximately 593,000 home purchases and 1,352,000 refinancings.

Fannie Mae provided $34 billion in multifamily financing in the first half of 2020, which enabled the financing of 373,000 units of multifamily housing. 

“In the second quarter, we helped hundreds of thousands of homeowners and renters get the guidance and support they needed to stay in their homes, while we delivered on record refinancing demand,” Fannie CEO Hugh R. Frater said. “Fannie Mae will continue to work with partners across the industry to fulfill our mission and our leadership role in housing finance.”

See the full report here.

Freddie Mac

Freddie reported comprehensive income of $1.9 billion, an increase of $1.3 billion from the first quarter.

Freddie’s total net worth increased to $11.4 billion from $9.5 billion on March 31.

“We earned a solid $1.9 billion of comprehensive income while expanding our efforts to support homeowners, renters, multifamily borrowers and lenders affected by the pandemic,” CEO David M. Brickman said. “During the period, we reached a key milestone toward exiting conservatorship by hiring a top- tier financial advisor to provide strategic counsel.” 

See the full report here.