Third Quarter 2026
Filed Oct 28, 2026Fannie Mae Earns $4.2 Billion in Net Income in Third Quarter 2026
Net income, net revenues and net worth increased from both the second quarter of 2026 and the third quarter of 2025, but credit-loss provisions rose sharply, multifamily net income declined, other comprehensive loss increased, and serious delinquency rates increased in both businesses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 total interest incomeGAAP | $41.62B | – | – |
| 3Q26 total interest expenseGAAP | −$34.06B | – | – |
| 3Q26 net interest incomeGAAP | $7.56B | 1 % | 5 % |
| 3Q26 fee and other incomeGAAP | $92M | 28 % | (25) % |
| 3Q26 net revenuesGAAP | $7.65B | 1 % | 5 % |
| 3Q26 fair value gains (losses), netGAAP | $630M | NM | NM |
| 3Q26 investment gains (losses), netGAAP | $94M | 77 % | (22) % |
| 3Q26 other gains (losses), netGAAP | $724M | NM | NM |
| 3Q26 provision for credit lossesGAAP | −$1.14B | (135) % | NM |
| 3Q26 administrative expensesGAAP | −$784M | 3 % | 4 % |
| 3Q26 legislative assessmentsGAAP | −$924M | 1 % | 2 % |
| 3Q26 credit enhancement expenseGAAP | −$371M | (3) % | 9 % |
| 3Q26 other income (expense), netGAAP | −$44M | NM | 54 % |
| 3Q26 total non-interest expenseGAAP | −$2.12B | (3) % | 6 % |
| 3Q26 income before federal income taxesGAAP | $5.11B | 2 % | 6 % |
| 3Q26 provision for federal income taxesGAAP | −$935M | 7 % | 4 % |
| 3Q26 net incomeGAAP | $4.18B | 5 % | 8 % |
| 3Q26 other comprehensive income (loss)GAAP | −$1.04B | NM | NM |
| 3Q26 total comprehensive incomeGAAP | $3.14B | (18) % | (18) % |
| 3Q26 net worthGAAP | $119.6B | 3 % | 13 % |
| 3Q26 basic earnings per shareGAAP | $0.18 | – | – |
| 3Q26 diluted earnings per shareGAAP | $0.18 | – | – |
| Nine months ended September 30, 2026 net interest incomeGAAP | $22.25B | – | – |
| Nine months ended September 30, 2026 total non-interest incomeGAAP | $791M | – | – |
| Nine months ended September 30, 2026 provision for credit lossesGAAP | −$1.90B | – | – |
| Nine months ended September 30, 2026 total non-interest expenseGAAP | −$6.37B | – | – |
| Nine months ended September 30, 2026 income before federal income taxesGAAP | $14.77B | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $11.88B | – | – |
| Nine months ended September 30, 2026 total comprehensive incomeGAAP | $10.63B | – | – |
| Nine months ended September 30, 2026 basic earnings per shareGAAP | $0.21 | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $0.21 | – | – |
| Guaranty book of business as of September 30, 2026other | $4.1T | – | – |
| Administrative expense ratioother | 10.25% | – | – |
| Illustrative return on average required CET1 capitalother | 11.1% | – | – |
| Single-family conventional acquisition volumeother | $88.3B | – | – |
| Average single-family conventional guaranty bookother | $3.56T | – | – |
| Single-family serious delinquency rate as of September 30, 2026other | 0.62% | – | – |
| Single-family provision for credit lossesGAAP | $694M | – | – |
| Multifamily acquisition volumeother | $14.5B | – | – |
| Multifamily guaranty book of business as of September 30, 2026other | $545.4B | – | – |
| Multifamily serious delinquency rate as of September 30, 2026other | 0.62% | – | – |
| Multifamily provision for credit lossesGAAP | $446M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Single-Family BusinessNet revenues remained largely unchanged compared with 2Q 2026; higher net interest income was partly accompanied by a shift to fair value gains. | $6.34B | 1 % | 4 % |
| Multifamily BusinessNet revenues increased compared with 2Q 2026, while multifamily acquisition volume increased to $14.5 billion and the guaranty book grew to $545.4 billion. | $1.31B | 4 % | 9 % |
Capital returns
- Dividends distributed or amounts attributable to senior preferred stock: $(3,140) million for the three months ended September 30, 2026.
- Dividends distributed or amounts attributable to senior preferred stock: $(10,625) million for the nine months ended September 30, 2026.
What drove it
- Net revenues increased primarily from higher net interest income from portfolios compared with 2Q 2026.
- Other gains totaled $724 million, driven primarily by net fair value gains.
- The single-family credit-loss provision reflected higher actual and projected interest rates, newly acquired loans, and newly delinquent loans.
- The multifamily credit-loss provision reflected weakening credit metrics on multifamily loans, a decline in the near-term property value forecast, and elevated interest rates.
- Non-interest expense increased versus 2Q 2026 primarily because of a shift from other income to other expense, partially offset by lower administrative expenses.
- The company provided $103 billion in liquidity to the mortgage market, supporting approximately 194,000 home purchases, 66,000 refinancings, and 96,000 rental units.
Concerns
- Provision for credit losses increased to $(1,140) million from $(485) million in 2Q 2026.
- Multifamily net income declined to $535 million from $789 million in 2Q 2026 and from $774 million in 3Q25.
- Other comprehensive loss increased by $885 million compared with 2Q 2026, driven by unrealized losses on available-for-sale securities.
- Single-family serious delinquency rate increased to 0.62% from 0.58% at prior quarter end.
- Multifamily serious delinquency rate increased to 0.62% from 0.60% at prior quarter end.
- Single-family conventional acquisition volume decreased to $88.3 billion from $111.2 billion in 2Q 2026.
What to watch
- Credit-loss provisions, including the effects of interest rates, newly acquired loans, delinquencies, multifamily credit metrics, and property-value forecasts.
- The trajectory of serious delinquency rates in the single-family and multifamily guaranty books.
- Whether fair value gains continue after $630 million of net fair value gains in 3Q26.
- Single-family acquisition volume and guaranty fee trends.
- Multifamily profitability, following a 32% quarter-over-quarter decline in net income.
- Unrealized losses on available-for-sale securities and their effect on other comprehensive income.
Balance sheet and cash flow
- Cash as of September 30, 2026: $10,918 million; December 31, 2025: $11,452 million.
- Restricted cash as of September 30, 2026: $25,425 million; December 31, 2025: $31,131 million.
- Total assets as of September 30, 2026: $4,317,887 million; December 31, 2025: $4,317,538 million.
- Debt of Fannie Mae as of September 30, 2026: $168,731 million; December 31, 2025: $127,289 million.
- Debt of consolidated trusts as of September 30, 2026: $4,000,518 million; December 31, 2025: $4,053,140 million.
- Total liabilities as of September 30, 2026: $4,198,250 million; December 31, 2025: $4,208,526 million.
- Total stockholders’ equity as of September 30, 2026: $119,637 million; December 31, 2025: $109,012 million.
- Actual available CET1 capital as of September 30, 2026 was a deficit of $30 billion.
Analysis
Fannie Mae reported 3Q26 net income of $4,177 million, up 5% from $3,982 million in 2Q26 and 8% from $3,859 million in 3Q25. Net revenues were $7,651 million, up 1% sequentially and 5% year over year, as net interest income increased to $7,559 million. Net worth rose to $119,637 million, a 3% sequential increase and a 13% increase from 3Q25. The guaranty book of business was $4.1 trillion, while illustrative return on average required CET1 capital increased to 11.1% from 10.8% in 2Q26.
Earnings benefited from $724 million of other gains, including $630 million of net fair value gains, compared with other losses of $(23) million in 2Q26. This favorable fair-value swing more than offset a substantial increase in the provision for credit losses to $(1,140) million from $(485) million. The company attributed the single-family provision to higher actual and projected interest rates, newly acquired loans, and newly delinquent loans. The multifamily provision reflected weakening credit metrics, a lower near-term property-value forecast, and elevated interest rates.
The Single-Family business generated $6,336 million of net revenues, up 1% from 2Q26 and 4% from 3Q25, and net income of $3,642 million, up 14% sequentially. Single-family conventional acquisition volume declined to $88.3 billion from $111.2 billion, while the average charged guaranty fee on new conventional acquisitions increased to 53.8 basis points from 53.5 basis points. The serious delinquency rate increased to 0.62% from 0.58% at prior quarter end. Multifamily net revenues rose to $1,315 million, but net income fell to $535 million from $789 million because other gains moved to a loss and the credit-loss provision increased to $446 million from $259 million.
Expense and capital indicators were mixed. Total non-interest expense was $(2,123) million, compared with $(2,068) million in 2Q26, though administrative expenses declined to $(784) million from $(811) million and the administrative expense ratio improved to 10.25% from 10.72%. Other comprehensive loss was $(1,037) million, worsening from $(152) million in 2Q26 due to unrealized losses on available-for-sale securities. The company reported $10,918 million of cash, $168,731 million of Fannie Mae debt, and $4,000,518 million of consolidated-trust debt as of September 30, 2026.
The release did not provide forward financial guidance. Operationally, Fannie Mae reported $103 billion of mortgage-market liquidity in the quarter, supporting approximately 194,000 home purchases, 66,000 refinancings, and 96,000 rental units. The key reported tradeoff is stronger core revenue and net worth against increasing credit provisioning, higher serious delinquency rates, lower single-family acquisition volume, and increased unrealized losses on available-for-sale securities.
Management, verbatim
Fannie Mae landed another strong performance this quarter, growing our net worth 13% year over year to $120 billion. Our continued focus on running an efficient business and reducing mortgage costs is delivering for American homeowners and renters—half the single-family loans we acquired went to low-and middle-income borrowers.
William J. Pulte, Director, U.S. Federal Housing, and Chairman, Fannie Mae Board of Directors
So far in 2026, we’ve provided $344 billion of liquidity, helping more than 295,000 first-time homeowners achieve the American Dream. Our talented team, strong business model, and solid balance sheet enable us to deliver on our mission while generating solid earnings, including $4.2 billion in net income in the third quarter.
Peter Akwaboah, Acting Chief Executive Officer and Chief Operating Officer, Fannie Mae
Fannie Mae’s continued profitability underscores the stability of our guaranty fee-driven business model and the strength of our balance sheet—as well as our ability to deliver reliable liquidity in all market conditions. Bolstered by our more efficient operations and continued focus on safety and soundness, we increased net income to $4.2 billion in the third quarter and our net worth to $119.6 billion.
Chryssa C. Halley, Chief Financial Officer, Fannie Mae
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Gross margin was not reported.
- Operating income was not reported.
- Non-GAAP metrics, including non-GAAP net income and non-GAAP earnings per share, were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A common-stock dividend was not reported.
- A tax rate was not reported.
- Quarter-over-quarter earnings per share comparisons were not reported.
- Prior-year and prior-quarter comparisons for several balance-sheet line items were not reported on the same basis.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.