Fannie Mae Files Q2 2024 10-Q

Ticker: FNMAP · Form: 10-Q · Filed: Jul 30, 2024 · CIK: 310522

Sentiment: neutral

Topics: 10-Q, mortgage, housing-finance

TL;DR

Fannie Mae's Q2 2024 10-Q is in. Financials look steady, housing market impact remains key.

AI Summary

Federal National Mortgage Association (Fannie Mae) filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its role in the U.S. housing finance system. Key financial data and operational updates are provided for the second quarter of 2024.

Why It Matters

This filing provides crucial insights into the financial health and operational status of Fannie Mae, a critical entity in the U.S. housing market, impacting mortgage availability and rates.

Risk Assessment

Risk Level: medium — Fannie Mae operates in a highly regulated and cyclical industry, making it susceptible to economic downturns and policy changes.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240630, meaning the filing covers the period ending June 30, 2024.

When was this 10-Q filing submitted to the SEC?

The filing was submitted on 20240730, as indicated by the 'Filed as of Date'.

What is Fannie Mae's Standard Industrial Classification (SIC) code?

Fannie Mae's SIC code is 6111, categorized under FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES.

What is the company's fiscal year end?

The company's fiscal year ends on December 31 (1231).

Does the filing indicate any changes in the company's name?

The filing notes a former company name of FEDERAL NATIONAL MORTGAGE ASSOCIATION with a date of name change on 19950110.

Filing Stats: 4,564 words · 18 min read · ~15 pages · Grade level 14 · Accepted 2024-07-30 07:22:04

Key Financial Figures

Filing Documents

—Financial Information 1

PART I—Financial Information 1

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets 61 Condensed Consolidated Statements of Operations and Comprehensive Income 62 Condensed Consolidated Statements of Cash Flows 63 Condensed Consolidated Statements of Changes in Equity 64 Note 1—Summary of Significant Accounting Policies 66 Note 2—Conservatorship, Senior Preferred Stock Purchase Agreement and Related Matters 67 Note 3—Consolidations and Transfers of Financial Assets 69 Note 4—Mortgage Loans 70 Note 5—Allowance for Loan Losses 84 Note 6—Investments in Securities 85 Note 7—Financial Guarantees 87 Note 8—Short-Term and Long-Term Debt 88 Note 9—Derivative Instruments 89 Note 10—Segment Reporting 94 Note 11—Concentrations of Credit Risk 96 Note 12—Netting Arrangements 101 Note 13—Fair Value 102 Note 14—Commitments and Contingencies 111 Note 15—Regulatory Capital Requirements 112

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 1 About Fannie Mae 1 Executive Summary 2 Legislation and Regulation 2 Key Market Economic Indicators 4 Consolidated Results of Operations 6 Consolidated Balance Sheet Analysis 14 Retained Mortgage Portfolio 15 Guaranty Book of Business 16 Business Segmen ts 17 Single-Family Business 18 Single-Family Mortgage Market 18 Single-Family Mortgage-Related Securities Issuances Share 19 Single-Family Business Metrics 20 Single-Family Business Financial Results 21 Single-Family Mortgage Credit Risk Management 22 Multifamily Business 35 Multifamily Mortgage Market 35 Multifamily Business Metrics 36 Multifamily Business Financial Results 38 Multifamily Mortgage Credit Risk Management 38 Consolidated Credit Ratios and Select Credit Information 44 Liquidity and Capital Management 45 Risk Management 52 Market Risk Management, including Interest-Rate Risk Management 52 Critical Accounting Estimates 54 Impact of Future Adoption of New Accounting Guidance 57

Forward-Looking Statements

Forward-Looking Statements 57

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 114 Fannie Mae Second Quarter 2024 Form 10-Q i

Controls and Procedures

Item 4. Controls and Procedures 114

—Other Information 116

PART II—Other Information 116

Legal Proceedings

Item 1. Legal Proceedings 116

Risk Factors

Item 1A. Risk Factors 117

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 117

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 119

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 119

Other Information

Item 5. Other Information 119

Exhibits

Item 6. Exhibits 119 Fannie Mae Second Quarter 2024 Form 10-Q ii MD&A | About Fannie Mae

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations You should read this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") in conjunction with our unaudited condensed consolidated financial statements and related notes in this report and the more detailed information in our annual report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"). You can find a "Glossary of Terms Used in This Report" in MD&A in our 2023 Form 10-K. 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 statements due to a variety of factors, including those discussed in "Forward-Looking Statements" and elsewhere in this report and in "Risk Factors" and elsewhere in our 2023 Form 10-K. About Fannie Mae Fannie Mae is a leading source of financing for residential mortgages in the United States. We provided $167.6 billion in liquidity to the mortgage market in the first half of 2024, which enabled the financing of approximately 610,000 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 financing for residential buildings with five or more

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