Federal National Mortgage Association (FNMA) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $3.3 billion, down 9% from Q1 and 26% year-over-year, marking 30 consecutive quarters of positive net income, mainly due to higher provision for credit losses.

• Net worth surpassed $100 billion for the first time, reaching $101.6 billion, up $3.3 billion from the previous quarter and $88.1 billion since 2020.

• Provided $102 billion in liquidity to the mortgage market in Q2, assisting 381,000 households, with 52% of home buyers being first-timers; $177.5 billion in liquidity was provided in H1 2025, financing 668,000 home purchases, refinancings, and rental units.

• Announced a partnership with Palantir Technologies to enhance mortgage fraud detection.

• Ranked 25th in the 2025 Fortune 500.

Financial highlights

• Net revenues were $7.2 billion in Q2 2025, up 2% sequentially but down $95 million year-over-year; net interest margin held steady at 0.66%.

• Provision for credit losses was $946 million in Q2 2025, compared to a $300 million benefit in Q2 2024.

• Non-interest expenses decreased by over $250 million from the prior quarter; efficiency ratio improved to 31.5%.

• Return on equity was 9.5% for the quarter; return on assets was 0.31%.

• Net worth increased 18% year-over-year and 4% sequentially.

Outlook and guidance

• Continued focus on expense management, capital building, and fraud prevention, with ongoing monitoring of mortgage market conditions and credit trends.

• Forecasts 2025 national home price growth of 2.8% and expects regional variation; GDP growth to slow and unemployment to rise modestly by year-end 2025.

• Multifamily vacancy rates projected to rise to 6.25% in 2025 due to elevated new supply.

• Forward-looking statements caution that actual outcomes may differ due to various risk factors.