Fannie Mae Files 2023 Annual Report on Form 10-K
Ticker: FNMAP · Form: 10-K · Filed: Feb 15, 2024 · CIK: 310522
Sentiment: neutral
Topics: Fannie Mae, 10-K, Annual Report, Financials, Mortgage
TL;DR
<b>Fannie Mae has submitted its 2023 annual report (10-K) detailing financial performance and key operational data.</b>
AI Summary
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMAP) filed a Annual Report (10-K) with the SEC on February 15, 2024. Fannie Mae filed its 2023 Form 10-K on February 15, 2024, covering the fiscal year ending December 31, 2023. The filing includes detailed financial information for the fiscal years 2023, 2022, and 2021. Key financial statement items such as retained earnings, accumulated other comprehensive income, and treasury stock are reported for multiple fiscal years. The company's primary beneficiary status for variable interest entities is noted as of December 31, 2023, and 2022. Fannie Mae's business address is listed as Midtown Center, 1100 15th St, NW, Washington, DC 20005.
Why It Matters
For investors and stakeholders tracking FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Fannie Mae's financial health and operational status for the 2023 fiscal year, crucial for investors and stakeholders to assess performance and risks. The detailed financial data, including historical comparisons, allows for trend analysis and informed decision-making regarding the company's position in the mortgage market.
Risk Assessment
Risk Level: medium — FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE shows moderate risk based on this filing. The company operates in a highly regulated environment with significant government oversight, which presents ongoing risks to its business model and financial stability.
Analyst Insight
Review the detailed financial statements and risk factors in the 10-K to understand Fannie Mae's current financial position and potential future challenges.
Key Numbers
- 2023-12-31 — Fiscal Year End (Reporting period)
- 2024-02-15 — Filing Date (Date of submission)
- 2023 — Fiscal Year (Primary reporting year)
- 2022 — Prior Fiscal Year (Comparative year)
- 2021 — Prior Fiscal Year (Comparative year)
Key Players & Entities
- FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (company) — Filer name
- FNMAP (company) — Ticker symbol
- 2024-02-15 (date) — Filing date
- 2023-12-31 (date) — Fiscal year end
- Washington (location) — Business address city
- DC (location) — Business address state
- 20005 (location) — Business address zip
- 1100 15TH ST, NW (location) — Business address street
FAQ
When did FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE file this 10-K?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Annual Report (10-K) with the SEC on February 15, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMAP).
Where can I read the original 10-K filing from FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE.
What are the key takeaways from FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's 10-K?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this 10-K on February 15, 2024. Key takeaways: Fannie Mae filed its 2023 Form 10-K on February 15, 2024, covering the fiscal year ending December 31, 2023.. The filing includes detailed financial information for the fiscal years 2023, 2022, and 2021.. Key financial statement items such as retained earnings, accumulated other comprehensive income, and treasury stock are reported for multiple fiscal years..
Is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE a risky investment based on this filing?
Based on this 10-K, FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE presents a moderate-risk profile. The company operates in a highly regulated environment with significant government oversight, which presents ongoing risks to its business model and financial stability.
What should investors do after reading FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's 10-K?
Review the detailed financial statements and risk factors in the 10-K to understand Fannie Mae's current financial position and potential future challenges. The overall sentiment from this filing is neutral.
Risk Factors
- Government Oversight and Regulation [high — regulatory]: Fannie Mae operates under significant government oversight and regulation, which can impact its business operations, financial condition, and strategic decisions.
- Credit Risk [high — financial]: The company is exposed to credit risk related to the mortgages it guarantees and securitizes.
- Interest Rate Risk [medium — market]: Fluctuations in interest rates can affect Fannie Mae's net interest income and the value of its mortgage-backed securities portfolio.
- Operational Risks [medium — operational]: Fannie Mae faces risks related to its complex operational infrastructure, including technology failures, cybersecurity threats, and process errors.
Key Dates
- 2024-02-15: Filing of 2023 Form 10-K — Provides the most recent annual financial and operational overview.
Filing Stats: 8,352 words · 33 min read · ~28 pages · Grade level 13.2 · Accepted 2024-02-15 07:22:56
Key Financial Figures
- $25 — Preferred Stock, Series T, stated value $25 per share Fixed-to-Floating Rate Non-
- $50 — Preferred Stock, Series O, stated value $50 per share 5.375% Non-Cumulative Conve
- $100,000 — es 2004-1 Preferred Stock, stated value $100,000 per share 5.50% Non-Cumulative Prefer
- $369 billion — gages in the United States. We provided $369 billion in liquidity to the mortgage market in
- $687 million — 2023 vs. 2022 Net revenues decreased $687 million in 2023 compared with 2022 , p rimarily
- $4.5 billion — nd other income. Net income increased $4.5 billion in 2023 compared with 2022 , primarily
- $7.9 billion — pared with 2022 , primarily driven by a $7.9 billion shift to benefit for credit losses in
- $17.4 billion — osses in 2022 . Net worth increased by $17.4 billion in 2023 to $77.7 billion as of December
- $77.7 billion — h increased by $17.4 billion in 2023 to $77.7 billion as of December 31, 2023 . 2022 vs. 202
- $9.3 billion — ranty fee income. Net income decreased $9.3 billion in 2022 compared with 2021 , primarily
- $11.4 billion — pared with 2021 , primarily driven by a $11.4 billion shift to provision for credit losses i
- $1.6 billion — ing to the decline in net income was a $1.6 billion shift to investment losses in 2022 from
- $12.9 billion — r value gains . Net worth increased by $12.9 billion in 2022 to $60.3 billion as of December
- $60.3 billion — h increased by $12.9 billion in 2022 to $60.3 billion as of December 31, 2022 . See " MD&A —
- $16.0 — nding was estimated to be approximately $16.0 trillion as of September 30, 2023 (the
Filing Documents
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Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . .
Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . 53 Key Market Economic Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Consolidated Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Consolidated Balance Sheet Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Retained Mortgage Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Guaranty Book of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Single-Family Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Single-Family Primary Business Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Single-Family Lenders and Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Single-Family Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Single-Family Mortgage Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Single-Family Mortgage-Related Securities Issuances Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Single-Family Business Metrics . . . . . . . . . . . . . . . . . .
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . .
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . . . 201 Item 13. Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Policies and Procedures Relating to Transactions with Related Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Transactions with Related Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Director Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Item 14. Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Fannie Mae 2023 Form 10-K ii PART IV Item 15. Exhibits, Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Item 16. Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1 Fannie Mae 2023 Form 10-K iii PART I This report includes forward-looking statements based on management's current expectations that are subject to significant uncertainties. Future events and our results may differ materially from those reflected in our forward-looking Factors" and elsewhere in this report. You can find a "Glossary of Terms Used in This Report" in "Management's Discussion an
Business
Item 1. Business About Fannie Mae Fannie Mae is a leading source of financing for residential mortgages in the United States. We provided $369 billion in liquidity to the mortgage market in 2023 , which enabled the financing of approximately 1.5 million home purchases, refinancings, and rental units. We are a government-sponsored, stockholder-owned corporation, chartered by Congress to provide liquidity and stability to the U.S. housing market and to promote access to mortgage credit. We primarily do this by buying residential mortgage loans that are originated by lenders. We place these loans into trusts and issue guaranteed mortgage-backed securities ("MBS" or "Fannie Mae MBS") that global investors buy from us. We do not originate mortgage loans or lend money directly to borrowers. We support both single-family and multifamily housing. Our Single-Family business provides financing for properties that have four or fewer residential units. Our Multifamily business provides fin ancing for residential buildings with five or more units. As of September 30, 2023 (the latest date for which information is available), Fannie Mae owned or guaranteed an estimated 1 in 4 single-family mortgage loans in the United States and an estimated 21% of multifamily mortgage debt outstanding in the United States . We provide a guaranty on the MBS that we issue. If a borrower fails to make a payment on a mortgage loan that is included in a Fannie Mae MBS, we pay the shortfall amount to the MBS investor. In exchange for providing this guaranty, we receive a guaranty fee. Guaranty fees are the primary source of our revenues. Because we assume the credit risk for mortgage loans in our MBS, our earnings are affected by the credit performance of these loans. Credit risk management is therefore key to our business and financial results. To help manage our mortgage credit risk exposure, and in response to capital requirements, we transfer some of our credit risk exposure