The mortgage giant’s net worth jumped to $112.7 billion as administrative expenses fell 19% sequentially and the guaranty book held above $4 trillion.

May 1, 2026

Fannie Mae reported a first-quarter profit of $3.7 billion on April 29, marking its 33rd consecutive quarterly gain and underscoring the resilience of its core guaranty business. The government-sponsored enterprise lifted its net worth to $112.7 billion as of March 31, 2026, an increase of roughly $99.2 billion since the start of 2020 and a $3.7 billion jump from year-end 2025.

The Washington-based mortgage finance company outperformed the $3.5 billion it earned in the fourth quarter of 2025, with stable net revenues of $7.3 billion absorbing modest pressures elsewhere in the income statement. The bottom-line improvement was driven primarily by a swing from fair value losses to fair value gains and by reduced administrative spending, partly offset by a transition from investment gains in the prior period to investment losses in the most recent quarter.

Leadership Frames the Quarter

William J. Pulte, who serves as Director of U.S. Federal Housing and chairs the company’s board, described Fannie Mae as substantially leaner and more efficient than a year ago. He emphasized that a financially sound enterprise remains a critical anchor for the broader housing finance system over the long run.

Peter Akwaboah, the acting chief executive and chief operating officer, attributed the quarter’s performance to the health of the guaranty franchise, disciplined operational execution, and a robust balance sheet. He reiterated the company’s commitment to providing consistent liquidity through every phase of the economic cycle to support stability and affordability across the U.S. housing market.

Earnings Composition

Net interest income, the largest contributor to revenues, came in at $7.2 billion, slightly below the $7.27 billion recorded in the fourth quarter but ahead of the $7.0 billion reported a year earlier. Fee and other income contributed an additional $82 million. Provisions for credit losses totaled $277 million, a modest improvement from the $298 million booked in the prior quarter.

Total non-interest expense fell to $2.2 billion from $2.4 billion in the fourth quarter of 2025, with the decline driven mainly by lower administrative costs. Key shifts included:

• Administrative expenses dropped 19% sequentially to $745 million, down from $921 million, and were 25% lower than a year earlier.
• Legislative assessments held essentially steady at $931 million.
• Credit enhancement expense edged lower to $358 million.

The illustrative return on average required Common Equity Tier 1 capital — a hypothetical measure showing what returns would look like if available capital matched regulatory requirements — improved to 10.4% for the quarter from 10.2% in the prior period. The administrative expense ratio strengthened sharply to 10.2% from 12.6% in the fourth quarter of 2025.

Chryssa C. Halley, the chief financial officer, said the results highlighted the durability of the business model and the strong credit profile of the guaranty book, leaving the company well positioned to fulfill its housing market role.

Single-Family Drives Earnings

The single-family business generated $3.2 billion in net income, a 19% improvement over the fourth quarter of 2025. Conventional acquisition volume rose to $98.7 billion from $96.8 billion, supported by a $7.0 billion increase in refinance activity that more than offset a $5.1 billion decline in purchase originations. The average charged guaranty fee on the conventional book, net of TCCA fees, ticked up to 48.8 basis points.

Credit characteristics held firm. The conventional guaranty book carried a weighted-average mark-to-market loan-to-value ratio of 51% and a weighted-average original FICO score of 753 at quarter-end, while the serious delinquency rate stayed flat at 0.58%. Provisions for single-family credit losses fell sharply to $103 million from $293 million, aided by home price appreciation that offset reserves built against new acquisitions and newly delinquent loans.

Jake Williamson, who leads the single-family business as executive vice president, said the company is investing in technology that streamlines dealings with lenders, with the aim of becoming the preferred counterparty for institutions serving evolving customer needs.

Multifamily Faces Mixed Conditions

The multifamily segment generated $546 million in net income, well below the $850 million booked in the fourth quarter of 2025. Acquisition volume in the unit fell to $17.1 billion from $25.8 billion, yet the multifamily book of business grew to $542.5 billion, up $7.8 billion from year-end 2025.

The average charged guaranty fee for the multifamily book slipped marginally to 71.1 basis points. Credit indicators were broadly stable, with a weighted-average original loan-to-value ratio of 63% and a weighted-average debt service coverage ratio of 1.9. However, the serious delinquency rate climbed to 0.78% from 0.74%, and provisions for credit losses surged to $174 million from just $5 million in the prior quarter, reflecting softer valuations on certain problem loans and rising delinquencies.

Kelly Follain, executive vice president for the multifamily segment, said the quarter reinforced the strength of the DUS lender model and the firm’s lender partnerships, which continued to deliver liquidity for borrowers and finance affordable rental housing in what she described as a dynamic market.

Mission Activity

During the quarter, Fannie Mae channeled roughly $116 billion of liquidity into the mortgage market, supporting:

• Approximately 154,000 home purchases
• About 121,000 refinancings
• Around 110,000 rental units

That activity translated into roughly 385,000 total financings. First-time homebuyers represented more than half of all single-family purchase loans the company acquired, and more than 80% of multifamily units financed were affordable to renters earning less than the area median income. Workout solutions also kept more than 24,000 households in their homes during the period.

Balance Sheet Snapshot

Total assets stood at $4.31 trillion at quarter-end, essentially flat versus year-end 2025, while the guaranty book of business remained at approximately $4.1 trillion. Although available CET1 capital still reflected a $37 billion deficit relative to regulatory requirements while the company remains in conservatorship, the steady accretion of retained earnings continues to narrow that gap.

Fannie Mae submitted its quarterly report on Form 10-Q for the period ended March 31, 2026 alongside the earnings release, directing investors to that document, the earnings presentation, and the financial supplement on its corporate website for a fuller account of operating, credit, and financial performance.