Federal National Mortgage Association (FNMA) Q2 2026 earnings summary

Executive summary

• Net income rose to $4.0 billion in Q2 2026, up 7% sequentially and 20% year-over-year, with net worth reaching $116.5 billion.

• Provided $125 billion in mortgage liquidity, supporting 417,000 households, including nearly 110,000 first-time homebuyers.

• Achieved $3 billion in estimated borrower closing cost savings since 2018 through appraisal alternatives.

• Continued operational efficiency initiatives, maintaining an administrative expense ratio near 10.7%.

Financial highlights

• Net revenues increased to $7.6 billion, up 4% year-over-year and from $7.3 billion in Q1 2026, driven by higher net interest income and guaranty fees.

• Non-interest expense declined year-over-year, while administrative expenses rose sequentially due to real estate and severance costs.

• Net interest margin reached 0.70%, the highest since 2022.

• Provision for credit losses in Q2 2026 was $485 million, down year-over-year but up from Q1 2026.

• Net worth increased to $116.5 billion, up 14.7% year-over-year.

Outlook and guidance

• Management expects home prices to rise 2.3% for full-year 2026, with regional variation.

• Continued focus on disciplined underwriting, credit quality, and technology-driven productivity improvements.

• Multifamily credit performance remains a focus due to ongoing market challenges.

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