Federal National Mortgage Association (FNMA) Q1 2026 earnings summary

Executive summary

• Net income reached $3.7 billion in Q1 2026, up 5% quarter-over-quarter and 2% year-over-year, with net revenues of $7.3 billion.

• Net worth increased to $112.7 billion as of March 31, 2026, up 14.6% year-over-year and $99.2 billion since early 2020.

• Provided $116 billion in liquidity, supporting approximately 385,000 households and assisting over 24,000 homeowners with foreclosure prevention.

• Operational efficiency gains and cost reductions contributed to improved financial results, with administrative expenses falling 19% sequentially.

• Updated credit score models to include VantageScore 4.0 and FICO Score 10T to support affordability and access.

Financial highlights

• Net revenues were $7.3 billion, up $195 million (3%) year-over-year, primarily from higher net interest income and strong guarantee fee revenue.

• Non-interest expense declined 16% year-over-year and 8% quarter-over-quarter, with administrative expense ratio improving to 10.2%.

• Net interest income was $7.2 billion, with net interest margin at 0.67%.

• Provision for credit losses was $277 million, with $103 million from single-family and $174 million from multifamily segments.

• Illustrative return on required CET1 capital was 10.4%, up from 10.2% in the prior quarter.

Outlook and guidance

• Management remains focused on operational efficiency, liquidity provision, and supporting housing market stability and affordability.

• Closely monitoring economic volatility, credit performance, and macroeconomic uncertainty.

• Home prices nationally increased by 1.2% in Q1 2026; full-year 2026 home price growth expected at 3.2%.

• Single-family mortgage market originations forecasted to rise 19% in 2026 to $2.34 trillion.

• Multifamily vacancy rates expected to decline slightly by year-end, with cumulative rent growth below 2%.