Fannie Mae reports Q2 2021 net profit of $ 7.2 billion – NMP

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The Federal National Mortgage Association, known as Fannie Mae, today announced second quarter 2021 net income of $ 7.2 billion, up 44% from the previous quarter’s $ 5 billion. .

The government-sponsored company said its net worth reached $ 37.3 billion as of June 30.

The company said it acquired a record $ 129.5 billion in single-family home purchases, and noted that nearly half were first-time home buyers.

Fannie Mae said home prices rose 10.5% in the first half of 2021, the highest six-month growth rate in the history of its home price index.

With the national moratorium on evictions ending at the end of last month, Fannie Mae said she has launched nearly 1.4 million forbearance plans to help borrowers since the start of the COVID-19 pandemic, and as of June 30, about $ 1.1 million, or nearly 79% of these loans have come out of forbearance. This includes approximately 659,000 through reinstatement or repayment, and approximately 323,000 through the company’s deferral payment option.

He noted that severe single-family delinquency decreased to 2.08% as of June 30, from 2.58% as of March 31, 2021, due to the ongoing economic recovery and the decline in the number of single-family loans from the business. in the context of COVID-. 19 abstention plan.

As of June 30, based on the unpaid principal balance, 1.2% of Fannie Mae’s multi-family guarantee portfolio had benefited from a forbearance plan (excluding loans liquidated before the end of the period), mainly due to the pandemic, the company mentioned. More than 70% of those loans were on a repayment plan or reinstated, and only 0.2% of the ledger, or $ 1 billion of outstanding principal balance, was still in active forbearance as of June 30, he said. declared.

Fannie Mae said second quarter net income increased $ 2.2 billion from the first quarter, mainly due to higher credit-related income and higher net interest income, partially offset by a change from fair value gains in the first quarter of 2021 to fair value. losses in the second quarter.

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