Fannie Mae Reveals Billion-Dollar Net Income for Q2 2026

Fannie Mae reported a net income of approximately $4 billion for the second quarter of 2026, an increase from $3.7 billion in the first quarter of the same year, and raised its net worth to $116.5 billion as of June 30, 2026. Net revenues rose to $7.6 billion in Q2, up from $7.3 billion in Q1 of 2026.

The growth in net income is attributed to higher net revenues, which were fueled by increased net interest income from portfolios, elevated net deferred guaranty fees, a transition to investment gains, and reduced non-interest expenses. However, these gains were somewhat counterbalanced by a higher credit loss provision and a transition to fair value losses.

Key Highlights:

• Growth in earnings from prior quarter reflects increased net revenues, which more than offset higher credit loss provision.
• 34th consecutive quarterly profit pushed net worth to $116.5 billion, a $103.0 billion increase since the start of 2020.
• Illustrative return on average required CET1(2) capital of 10.8%, up from 10.4% in Q1 of 2026.

“The strength of our core guaranty business and financial discipline enabled us to deliver another quarter of solid earnings and real impact,” said Peter Akwaboah, Acting CEO and COO of Fannie Mae. “We provided $125 billion in mortgage market liquidity, supporting 417,000 home purchases, refinances, and rental units, including helping almost 110,000 borrowers buy their first home. Our financial performance advances our mission to promote a stable, accessible, and affordable housing market across America.”

Business Impact & Quarterly Highlights

Mortgage acquisitions enabled the funding of approximately 417,000 home purchases, refinancings, and rental units during Q2 of 2026.

“Our second quarter results highlight our large, stable revenue base and continued expense and capital discipline,” said Chryssa C. Halley, Chief Financial Officer of Fannie Mae. “Together, these strengths contributed to our highest level of quarterly net income in over a year, bringing our net worth to above $116 billion.”

• $125 billion has been allocated to enhance liquidity in the mortgage market, facilitating approximately 201,000 home purchases, 117,000 refinancing transactions, and 99,000 rental units.
• Over 80% of the multifamily units financed were affordable for renters earning less than 100% of the area median income.
• Assisted nearly 110,000 first-time homebuyers in acquiring a home, which accounts for 55% of single-family purchase transactions.
• Our foreclosure prevention initiatives enabled more than 21,000 homeowners to stay in their residences.
• We launched a new weekly data series called the Purchase-Application Level Index (PALI), which offers insights into anticipated home sales and GSE MBS issuance activities.
• Since 2018, we have achieved an estimated $3 billion in borrower closing cost savings through Fannie Mae-enabled appraisal alternatives.

“Fannie Mae’s strong second-quarter earnings of $4 billion are up 20% year-over-year, growing its net worth to more than $116 billion,” said William J. Pulte, Director of U.S. Federal Housing and Chairman of Fannie Mae’s Board of Directors. “This shows the company’s continued stability and growth, all while reaching $3 billion in estimated homeowner savings since 2018 through innovative appraisal alternatives.”

Net revenues reached $7.6 billion, mainly derived from guaranty fee income associated with the company’s $4.1 trillion guaranty book of business. The rise in net revenues was largely attributed to increased net interest income from portfolios and a boost in net deferred guaranty fee income.

Single-family net revenues amounted to $6.3 billion from a $3.6 trillion conventional guaranty book, with an average charged guaranty fee of 49.0 basis points. Multifamily net revenues totaled $1.3 billion from a $544.6 billion guaranty book, featuring an average charged guaranty fee of 70.5 basis points.

The provision for credit losses was $485 million, in contrast to $277 million in Q1 of 2026. Non-interest expenses were recorded at $2.1 billion, compared to $2.2 billion in Q1 of 2026; this decrease was primarily due to a reallocation from other expenses to other income within the Multifamily segment, although it was partially countered by increased administrative costs. Overall, other losses saw a reduction of $133 million compared to Q1 of 2026, driven by a transition from investment losses to investment gains, which was partially offset by a shift from fair value gains to fair value losses.

Single- and Multifamily Summary (Q2 2026):

The volume of single-family conventional acquisitions rose to $111.2 billion, up from $98.7 billion in the first quarter of 2026. This increase was primarily driven by a $17.9 billion rise in purchase acquisition volume, which was partially countered by a $5.4 billion decline in refinance acquisition volume. Average guaranty books for single-family conventional loans remained relatively stable at $3.56 trillion compared to Q1 of 2026.

Further, the average guaranty fee charged, net of TCCA fees, on the single-family conventional guaranty book increased to 49.0 basis points, compared to 48.8 basis points in the first quarter of 2026. Conversely, the average guaranty fee on newly acquired conventional loans, net of TCCA fees, decreased to 53.5 basis points from 55.1 basis points in Q1 of 2026.

Overall credit characteristics of the single-family conventional guaranty book showed little change from the previous quarter, with a weighted-average mark-to-market loan-to-value ratio of 51% and a weighted-average FICO credit score at origination of 753 as of June 30, 2026. The serious delinquency rate for single-family loans remained steady at 0.58% as of June 30, 2026, compared to the end of the previous quarter.

“Lenders are using our enhanced Desktop Underwriter services to drive speed, certainty, and a more seamless borrower experience,” said Jake Williamson, EVP, Head of Single-Family at Fannie Mae. “We are using technology with the goal of modernizing the lending process and lowering up-front mortgage costs, including building upon the estimated $3 billion that borrowers have saved since 2018 through Fannie Mae-enabled appraisal alternatives.”

The provision for single-family credit losses amounted to $226 million, mainly related to new acquisitions, newly delinquent loans, and the redesignation of certain loans to held for sale, which was partially offset by a benefit from actual home price appreciation. This is in contrast to a provision of $103 million recorded in the first quarter of 2026.

Overall volume of multifamily acquisitions fell to $14.2 billion, down from $17.1 billion in Q1 of 2026. The multifamily book of business expanded to $544.6 billion as of June 30, 2026, reflecting a $2.1 billion increase since March 31, 2026. The average charged guaranty fees across the multifamily book decreased by 0.6 basis points to 70.5 basis points as of June 30, 2026, compared to 71.1 basis points as of March 31, 2026.

The overall credit characteristics of the multifamily guaranty book remained largely stable compared to the previous quarter, with a weighted-average original loan-to-value ratio of 63% and a weighted-average debt service coverage ratio of 1.9 as of June 30, 2026. Serious multifamily delinquency rate declined to 0.60% as of June 30, 2026, down from 0.78% at the end of the prior quarter, primarily due to the modification of a loan portfolio that was previously in forbearance and foreclosure activity, although this was partially offset by additional loans that became seriously delinquent due to ongoing market challenges in recent times.

Additionally, provisions for multifamily credit losses amounted to $259 million, mainly linked to declining property valuations and slower growth in net operating income within our multifamily guaranty book, as well as provisions for loans that became seriously delinquent. This is an increase from a provision of $174 million in Q1 of 2026.

To read the full report, click here.