Fannie Mae Trims Expenses, Posts $3.7b Profit In Q1 2026

Fannie Mae reported first-quarter 2026 net income of $3.7 billion on Wednesday, extending its streak of quarterly profits to 33 consecutive quarters as the government-sponsored enterprise (GSE) benefited from stable revenues, lower expenses and continued strength in its guaranty business.

Fannie Mae reported that net income rose from $3.5 billion in the fourth quarter of 2025 and slightly exceeded the $3.66 billion it earned in the same period last year. Its net worth increased to $112.7 billion as of March 31, up from $109 billion at the end of last year.

“We opened the year strong,” Peter Akwaboah, the company’s chief operating officer and acting CEO, said during an earnings call on Wednesday. He added that the results reflected “the sustained health of our guaranty business, the discipline of our execution and the strength of our balance sheet.”

Akwaboah said the company is navigating “an already challenging housing market” made more uncertain by the broader macroeconomic environment. But he also said Fannie Mae remains focused on “providing uninterrupted liquidity in all economic cycles to support stability and affordability to the U.S. housing market.”

Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and chairman of Fannie Mae’s board, said in a statement that “Fannie Mae is a far more effective and leaner company than it was a year ago, with solid earnings, lower expenses, and $112.7 billion in net worth.”

The company’s quarterly revenues were essentially flat at $7.3 billion, driven largely by guaranty fees tied to its $4.1 trillion guaranty book of business.

Chryssa C. Halley, Fannie Mae’s chief financial officer, characterized the results as indicative of the GSE’s “durability.”

“Net revenues in the quarter were stable at $7.3 billion, administrative expenses were lower, and our growing net worth put Fannie Mae in a solid position to serve the housing market and fulfill our mission,” she said in a statement.

Administrative expenses fell 19% from the previous quarter to $745 million, which the company attributed to cost-cutting efforts and operational efficiencies.

“We are committed to sustaining a smaller cost base by remaining focused on operational efficiency, including by automating manual processes and increasing productivity with AI,” Halley said on the earnings call.

Fannie Mae said it provided $116 billion in liquidity to the mortgage market during the quarter, supporting about 154,000 home purchases, 121,000 refinances and 110,000 rental units. More than half of its single-family purchase loans went to first-time homebuyers, while more than 80% of multifamily units financed were affordable to renters earning below the area median income.

Executives also highlighted technology and market initiatives during the call, including increased purchases of mortgage-backed securities (MBS) and the rollout of new credit scoring options.

“Since quarter end, we enabled two new credit score models, including immediate use of VantageScore 4.0 to support affordability and access through industry innovation and competition,” Akwaboah said.

Fannie Mae’s single-family business generated $3.17 billion in net income during the quarter, up 19% from the prior quarter, helped by lower credit-loss provisions and reduced expenses. Single-family acquisition volume rose modestly to $98.7 billion as refinance activity increased.

Meanwhile, the multifamily division earned $546 million, down 36% from the prior quarter as credit-loss provisions climbed amid rising delinquencies and weaker property valuations on some troubled loans. The multifamily serious delinquency rate increased to 0.78%, up from 0.74% at the end of 2025.

Halley noted that Fannie Mae’s “net interest margin increased slightly from 2025 levels” and that its “total guarantee book continued to reprice higher in the first quarter as higher average guarantee fees in our larger single-family business outweighed a decline in average guarantee fees in the multifamily business.”

Halley said market volatility late in the quarter did not materially affect first-quarter performance, although the company is “closely monitoring factors that could influence the credit performance of our guaranty book.”