Archive photo: A residential neighborhood; the homes are not identified as Fannie Mae-financed properties. Derwin Edwards/Pexels (cropped)
Fannie Mae reported $4.2 billion in third-quarter net income Wednesday, up from $4.0 billion in the previous quarter, even as its provision for credit losses more than doubled.
The mortgage-finance company said its net worth reached $119.6 billion at September 30, compared with $116.5 billion at the end of June. Net revenue rose to $7.7 billion from $7.6 billion, according to its results announcement and full earnings release.
Credit-loss provision increases
Fannie Mae recorded a $1.14 billion provision for credit losses, compared with $485 million in the second quarter. For single-family mortgages, the company cited higher actual and projected interest rates, newly acquired loans and newly delinquent loans.
Its multifamily provision reflected weakening loan credit metrics, a lower near-term property-value forecast and elevated interest rates, the company said.
Higher net revenue and a shift from fair-value losses to gains helped lift quarterly net income, partly offset by the larger credit-loss provision. Other gains totaled $724 million, compared with $23 million in other losses in the second quarter.
Mortgage-market financing
Fannie Mae said it supplied $103 billion in mortgage-market liquidity during the quarter, supporting approximately 194,000 home purchases, 66,000 refinancings and 96,000 rental units. That included financing for nearly 103,000 first-time homebuyers.
The company said 47% of its single-family loan acquisitions went to low- and middle-income borrowers earning no more than the area median income. Its guaranty book of business was $4.1 trillion.
JBizNews Desk | Washington
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