Fannie Mae As of June 30, second-quarter net profit was US$4.5 billion, and net assets reached US$86.5 billion.
Despite a significant increase in single-family mortgage purchases, its net income increased by only $164 million from the first quarter. Fannie Mae reported in Tuesday’s earnings report that it purchased $85.9 billion in single-family conventional loans in the second quarter of 2024, up from $62.3 billion in the first quarter.
Home loan purchases, about half of which were first-time homebuyers, increased to $74.5 billion in the second quarter of 2024 from $53 billion in the previous quarter. Refinancing acquisitions increased to $11.4 billion from $9.3 billion in the first quarter.
Average single-family traditional secured business decreased by $6.4 billion between the first and second quarters, to approximately $3.624 billion. That was driven by loan repayments, liquidations and sales exceeding acquisitions during the quarter, the government-sponsored enterprise (GSE) said in its earnings report.
Fannie Mae’s average single-family guarantee fee fell to 51.9 basis points in the second quarter from 54.9 basis points in the first quarter of 2024, primarily due to a shift in product mix and improving credit conditions.
The serious delinquency rate for single-family loans fell from 0.48% to 0.51% during the same period.
Overall, GSE net income increased $231 million annually to $7.3 billion in the second quarter of 2024, although net income fell by $510 million. This is primarily due to reduced credit loss benefits for single-family mortgages.
