Federal National Mortgage Association (FNMA) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $3.9 billion, up 16% sequentially but down year-over-year, driven by changes in credit loss provisions and marking the 31st consecutive quarterly profit.

• Net worth increased to $105.5 billion as of September 30, 2025, a 3.8% rise from Q2 and 16.6% year-over-year.

• Provided $109 billion in liquidity to the mortgage market in Q3, assisting over 400,000 households, with about half being first-time homebuyers.

• Efficiency ratio improved to 29.3% from 31.5% in Q2 2025, reflecting ongoing cost management.

• Leadership transition occurred with Peter Aquibo named Acting CEO.

Financial highlights

• Net revenues were $7.3 billion, flat year-over-year and primarily from a $4.1 trillion guaranty book.

• Pretax income rose 16% sequentially to $4.8 billion, but declined 4% year-over-year.

• Provision for credit losses in Q3 2025 was $338 million, down from $946 million in Q2 2025 but up from a $27 million benefit in Q3 2024.

• Non-interest expenses declined to $2.1 billion, an 8% improvement sequentially.

• Year-to-date net income reached $10.8 billion.

Outlook and guidance

• No meaningful pickup in refinancing expected unless mortgage rates fall below 5%.

• Affordability headwinds and buyer caution continue to impact the housing market.

• Low-income housing tax credit investments expected to rise after the annual investment limit increased to $2 billion.

• 2025 Dodd-Frank Act Stress Test demonstrated ability to support the housing market during stress.

• Forecasts national home price growth of 2.5% for full-year 2025, with regional variation expected.