Advertisement
Enjoy access to a free NMLS renewal class when you attend an in-person event.
Says Nearly 80% Of 1.4M Single-Family Loans Have Exited Forbearance Plans
KEY TAKEAWAYS
- $7.2B net income in 2Q up from $5B in 1Q
- Record high of $129.5B in single-family home purchases
- Home prices grew 10.5% in first half of 2021, highest 6-month rate in history of Fannie Mae index
The Federal National Mortgage Association, known as Fannie Mae, today reported $7.2 billion in net income for the second quarter of 2021, up 44% from $5 billion in the previous quarter.
The government-sponsored enterprise said its net worth increased to $37.3 billion as of June 30.
The enterprise reported that it acquired $129.5 billion in single-family home purchases, a record, and noted that nearly half involved first-time homebuyers.
Fannie Mae said home prices grew 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 eviction moratorium ending at the end of last month, Fannie Mae reported that it had initiated nearly 1.4 million forbearance plans to help borrowers since the onset of the COVID-19 pandemic, and that as of June 30, approximately 1.1 million, or nearly 79%, of those loans have exited forbearance. That includes approximately 659,000 through reinstatement or payoff, and approximately 323,000 through the company's payment deferral option.
It noted that single-family serious 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 the company's single-family loans in a COVID-19 forbearance plan.
As of June 30, based on unpaid principal balance, 1.2% of Fannie Mae's multifamily guaranty book of business had received a forbearance plan (excluding loans that liquidated prior to the end of the period), primarily as a result of the pandemic, the enterprise said. More than 70% of those loans were in a repayment plan or reinstated, and only 0.2% of the book, or $1B in unpaid principal balance, was still in active forbearance as of June 30, it said.
Fannie Mae said net income increased $2.2 billion in the second quarter from the first quarter driven primarily by an increase in credit-related income and higher net interest income, partially offset by a shift from fair value gains in the first quarter of 2021 to fair value losses in the second quarter.
For more detailed information, click here.
