From Inside Mortgage Finance
Mike SP
Fannie Increases Profits Despite Decline in Acquisitions
Profits at Fannie Mae climbed 10.3% on a quarterly basis to $4.3 billion in the first quarter of 2024. During that span, acquisitions of single-family mortgages by the government-sponsored enterprise declined by 11.4% to $62 billion.
Chryssa Halley, chief financial officer at Fannie, noted that the GSE recorded a $180 million benefit for credit losses in the first quarter after taking a $116 million provision for credit losses the previous quarter.
“This was driven by a release in reserves due to increases in forecasted single-family home prices, partially offset by an increase in reserves for multifamily,” she said Tuesday during Fannie’s earnings call.
Declines in apartment property values and higher interest rates drove a $155 million provision for losses in Fannie’s multifamily business. Even so, a $118 million increase in expected recoveries from credit enhancements helped multifamily profits edge up from $639 million in the fourth quarter to $713 million in the first.
