Fannie Mae Files Q3 2024 10-Q

Ticker: FNMAP · Form: 10-Q · Filed: Oct 31, 2024 · CIK: 310522

Sentiment: neutral

Topics: 10-Q, mortgage, housing finance

TL;DR

Fannie Mae's Q3 2024 10-Q is in. Financials look steady, reflecting its critical role in housing finance.

AI Summary

Federal National Mortgage Association (Fannie Mae) filed its 10-Q for the period ending September 30, 2024. The filing details its financial performance and operations for the third quarter and the first nine months of the year. Key financial data and operational metrics are presented, reflecting the company's role in the U.S. housing finance system.

Why It Matters

This filing provides crucial insights into the financial health and operational status of Fannie Mae, a government-sponsored enterprise vital to the U.S. housing market.

Risk Assessment

Risk Level: medium — Fannie Mae operates in a highly regulated environment and is exposed to significant credit and market risks inherent in the mortgage industry.

Key Players & Entities

FAQ

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

The reporting period for this 10-Q filing is September 30, 2024.

What is the Central Index Key for Federal National Mortgage Association?

The Central Index Key for Federal National Mortgage Association is 0000310522.

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

This 10-Q filing was submitted to the SEC on October 31, 2024.

What is the Standard Industrial Classification for Fannie Mae?

The Standard Industrial Classification for Fannie Mae is FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111].

What is the fiscal year end for Federal National Mortgage Association?

The fiscal year end for Federal National Mortgage Association is December 31.

Filing Stats: 4,568 words · 18 min read · ~15 pages · Grade level 15.2 · Accepted 2024-10-31 07:23:59

Key Financial Figures

Filing Documents

—Financial Information 1

PART I—Financial Information 1

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets 64 Condensed Consolidated Statements of Operations and Comprehensive Income 65 Condensed Consolidated Statements of Cash Flows 66 Condensed Consolidated Statements of Changes in Equity 67 Note 1—Summary of Significant Accounting Policies 69 Note 2—Conservatorship, Senior Preferred Stock Purchase Agreement and Related Matters 70 Note 3—Consolidations and Transfers of Financial Assets 72 Note 4—Mortgage Loans 73 Note 5—Allowance for Loan Losses 88 Note 6—Investments in Securities 90 Note 7—Financial Guarantees 92 Note 8—Short-Term and Long-Term Debt 93 Note 9—Derivative Instruments 94 Note 10—Segment Reporting 99 Note 11—Concentrations of Credit Risk 101 Note 12—Netting Arrangements 106 Note 13—Fair Value 107 Note 14—Commitments and Contingencies 116 Note 15—Regulatory Capital Requirements 117

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 5 Consolidated Results of Operations 7 Consolidated Balance Sheet Analysis 16 Retained Mortgage Portfolio 17 Guaranty Book of Business 19 Business Segmen ts 20 Single-Family Business 20 Single-Family Mortgage Market 20 Single-Family Mortgage-Related Securities Issuances Share 21 Single-Family Business Metrics 22 Single-Family Business Financial Results 23 Single-Family Mortgage Credit Risk Management 24 Multifamily Business 37 Multifamily Mortgage Market 37 Multifamily Business Metrics 38 Multifamily Business Financial Results 40 Multifamily Mortgage Credit Risk Management 40 Consolidated Credit Ratios and Select Credit Information 47 Liquidity and Capital Management 48 Risk Management 55 Institutional Counterparty Credit Risk Management 55 Market Risk Management, including Interest-Rate Risk Management 55 Critical Accounting Estimates 57 Impact of Future Adoption of New Accounting Guidance 60

Forward-Looking Statements

Forward-Looking Statements 60 Fannie Mae Third Quarter 2024 Form 10-Q i

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 119

Controls and Procedures

Item 4. Controls and Procedures 119

—Other Information 121

PART II—Other Information 121

Legal Proceedings

Item 1. Legal Proceedings 121

Risk Factors

Item 1A. Risk Factors 122

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 122

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 124

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 124

Other Information

Item 5. Other Information 124

Exhibits

Item 6. Exhibits 125 Fannie Mae Third 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," "Risk Factors" and elsewhere in this report and 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 $273.9 billion in liquidity to the mortgage market in the first nine months of 2024, which enabled the financing of approximately 993,000 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 units. A

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