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Fannie Mae posts $4B Q2 profit, credit costs rise
Net income rose 7% quarter over quarter to $4.0 billion, while the credit loss provision increased to $485.0 million as multifamily delinquencies and weaker property valuations pressured results.
Fannie Mae reported $4.0 billion in net income for the second quarter of 2026, up 7% from the first quarter, as higher net interest income and increased deferred guaranty fee income lifted net revenue 4% to $7.6 billion, HousingWire reports.
The government-sponsored enterprise said its provision for credit losses rose to $485.0 million from $277.0 million in the prior quarter, with increases in both single-family and multifamily businesses. In multifamily, the allowance increased by $102.0 million, and the company recorded a $259.0 million multifamily credit-loss provision, which its chief financial officer linked to weaker property valuations, slower net operating income growth, and loans becoming seriously delinquent.
Fannie Mae also said it expects ongoing multifamily market challenges to drive additional delinquencies. On the business volume side, single-family net income rose to $3.3 billion from $3.2 billion, with conventional acquisition volume increasing to $111.2 billion from $98.7 billion due to higher purchase activity, while refinance acquisition volume declined as mortgage rates moved higher during the quarter.