Mortgage giant posted its 31st straight quarterly profit, but results fell short of Wall Street expectations
Fannie Mae reported a net income of $3.9 billion for the third quarter of 2025, marking its 31st consecutive profitable quarter.
Despite the milestone, the government-sponsored mortgage giant’s results missed analyst estimates, with revenue coming in at $7.3 billion—below the $8.1 billion consensus—and earnings per share flat at $0.00, missing the expected $0.68.
The company’s net income rose 16% from the previous quarter, driven by reductions in credit loss provisions and non-interest expenses, but was down 5% year-over-year.
“We delivered $3.9 billion in net income for the third quarter and $10.8 billion year to date, underscoring the strength and resilience of our earnings,” Chryssa Halley, Fannie Mae’s chief financial officer, said.
“Net revenues remained steady at $7.3 billion this quarter, reflecting the consistency of our guaranty fee-driven business model. Our performance underscores our commitment to the long-term financial health of Fannie Mae.”
Net worth climbed to $105.5 billion, up $14.95 billion from a year earlier. The company’s efficiency ratio improved to 29.3%, and its illustrative return on average required CET1 capital rose to 10.3% from 9.9% in the prior quarter.
Single-family and multifamily segments show mixed signals
Fannie Mae’s single-family business saw acquisition volume rise to $90.4 billion, up from $84.1 billion in the second quarter. The average charged guaranty fee on new conventional acquisitions, net of TCCA fees, ticked down to 56.3 basis points.
Credit quality remained strong, with a weighted-average FICO score at origination of 753 and a loan-to-value ratio of 50%. However, the single-family serious delinquency rate edged up to 0.54%.
“Our acquisition volumes in the quarter reflect our continued commitment to providing consistent and reliable liquidity to the mortgage market,” Jake Williamson, acting head of single-family, said.
“The entire Single-Family team at Fannie Mae remains focused on unlocking value for our lender partners by making the mortgage process seamless and more efficient, enabled by our industry-leading Desktop Underwriter platform.”
On the multifamily side, acquisition volume increased to $18.7 billion, and the book of business grew to $521.3 billion. The average charged guaranty fee on the multifamily book decreased slightly to 72.4 basis points.
The multifamily serious delinquency rate rose to 0.68%, reflecting ongoing stress in parts of the rental market.
Kelly Follain, head of multifamily, said, “We remain focused on flexibly and safely meeting the needs of our multifamily lenders, investors, and borrowers as their partner of choice to help meet the demand for affordable rental housing in the United States.”
Broader market context and regulatory capital
Fannie Mae provided $109 billion in liquidity to the mortgage market during the quarter, supporting more than 400,000 households, including 207,000 first-time homebuyers. The company continues to build capital, but reported a regulatory capital deficit of $25.4 billion as of September 30. The 2025 Dodd-Frank Act Stress Test indicated Fannie Mae could continue to support the housing market even under severe economic conditions.
Bill Pulte, chairman of the board, said, “Fannie Mae is operating with greater business focus than ever. Trimming $173 million in administrative expenses since the first quarter of 2025, we have grown our net worth to over $105 billion.”
Fannie Mae also recently made changes to its leadership, naming chief operating officer Peter Akwaboah as acting CEO and appointing John Roscoe and Brandon Hamara as co-presidents.
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