Federal National Mortgage Association (FNMA) Q1 2025 earnings summary

Executive summary

• Net income was $3.7 billion for Q1 2025, down $659 million year-over-year, with net worth rising to $98.3 billion as of March 31, 2025.

• Provided $76 billion in liquidity, supporting 287,000 households, including 74,000 first-time homebuyers.

• Ended Q1 2025 with a $4.1 trillion guaranty book of business and $4.35 trillion in assets.

• Focused on operational efficiency, capital strength, and supporting housing affordability and stability.

• FHFA Director rescinded or suspended certain policies and requirements, impacting governance and operations.

Financial highlights

• Net revenues were $7.1 billion, flat year-over-year; net interest income was $7.0 billion, unchanged from Q1 2024.

• Provision for credit losses was $24 million, compared to a $180 million benefit in Q1 2024.

• Fair value gains fell to $123 million from $480 million year-over-year.

• Efficiency ratio rose to 36.1% from 30.9% in Q1 2024, driven by lower fair value gains and higher non-interest expense.

• Net worth increased by $3.7 billion sequentially and by $16.3 billion (20%) year-over-year.

Outlook and guidance

• Home price growth expected at 4.1% nationally in 2025, with regional variation.

• Single-family mortgage originations forecasted at $2.0 trillion in 2025, up 17% year-over-year.

• Multifamily market originations expected between $325 billion and $365 billion in 2025; rent growth forecasted at 2.0% to 2.5%.

• Mortgage rates expected to average 6.5% in 2025; home sales projected to rise to 4.9 million units.

• Management emphasizes continued focus on operational improvements, capital building, and supporting a safe and sound U.S. mortgage market.