Federal National Mortgage Association

XMUN:FNM

Net income: Fannie Mae reported net income of $4 billion, up 7% from the first quarter and 20% year-over-year, helped by stronger revenues and tighter expense control.

Revenue strength: Net revenues rose to $7.6 billion, with the guarantee business contributing nearly 80% of total net revenues and supporting another solid quarter.

Capital and liquidity: The company ended the quarter with more than $116 billion in net worth and provided $125 billion of liquidity to the mortgage market, helping about 417,000 households.

Efficiency gains: Administrative expense ratio was 10.7%, below recent historical levels, as Fannie Mae said its efficiency program continued to deliver savings.

Credit and outlook: Credit costs rose, with a $226 million provision for credit losses, and management said multifamily market challenges are expected to create additional delinquencies.

Business mix: Single-family acquisitions reached $111 billion, the highest since the third quarter of 2022, while multifamily new business volume was $14 billion despite rate pressure and competition.