Fannie Mae's 34th consecutive quarterly profit and growing net worth signal continued operational stability, but the sharp increase in credit loss provisions (especially multifamily) warrants monitoring for further deterioration in commercial real estate. The company remains in conservatorship with a CET1 capital deficit of $33 billion, so any progress toward recapitalization or privatization remains a key long-term catalyst.
Price Chart
Executive Summary
Fannie Mae reported Q2 2026 net income of $4.0 billion, up 7% sequentially and 20% YoY, driven by higher net revenues and lower expenses. Net revenues rose to $7.6 billion, and net worth increased to $116.5 billion. The quarter marked the 34th consecutive quarterly profit, but the provision for credit losses more than doubled to $485 million, reflecting higher multifamily credit charges and weaker property valuations.
Key Financial Metrics
Key Facts
- Net income of $4.0 billion in Q2 2026, up 7% from $3.7 billion in Q1 2026 and up 20% from $3.3 billion in Q2 2025.
- Net revenues of $7.6 billion, up 4% from $7.3 billion in Q1 2026 and up 4% from $7.2 billion in Q2 2025.
- Net worth increased to $116.5 billion as of June 30, 2026, up from $112.7 billion at March 31, 2026.
- Provision for credit losses increased to $485 million from $277 million in Q1 2026, driven by higher multifamily provisions.
- Single-family net income of $3.3 billion, up 3% QoQ and 20% YoY; multifamily net income of $704 million, up 29% QoQ and 21% YoY.
- Single-family serious delinquency rate unchanged at 0.58%; multifamily serious delinquency rate improved to 0.60% from 0.78% in Q1 2026.
- Administrative expense ratio improved to 10.7% from 10.2% in Q1 2026 (YTD annualized).
- Illustrative return on average required CET1 capital of 10.8%, up from 10.4% in Q1 2026.
Financial Impact
Net income of $4.0 billion, net revenues of $7.6 billion, net worth of $116.5 billion
Risk Factors
- Multifamily credit deterioration: provision for multifamily credit losses rose to $259 million from $174 million in Q1 2026, driven by weaker property valuations and slower NOI growth.
- Regulatory capital deficit: actual CET1 capital was a deficit of $33 billion as of June 30, 2026, though the company is not required to comply with minimum capital while in conservatorship.
- Interest rate and fair value volatility: fair value losses of $76 million in Q2 2026 vs gains of $121 million in Q1 2026.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000310522-26-000065 |
| Document: a226exhibit993.htm | 0000310522-26-000065 |
| Document: a226exhibit992.htm | 0000310522-26-000065 |
| Document: fnm-20260729.htm | 0000310522-26-000065 |
| Document: 0000310522-26-000065-index-headers.html | 0000310522-26-000065 |
| Document: 0000310522-26-000065-index.html | 0000310522-26-000065 |
| Document: 0000310522-26-000065.txt | 0000310522-26-000065 |
| 8-K Data (Synthetic) | 0000310522-26-000065 |
US Market Status
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