Fannie Mae Reports $3.66B Q1 Income Decline, Plans Loan Sale

Fannie Mae reported a decline in net income for the first quarter of 2025, with earnings dropping to $3.66 billion from $4.32 billion a year earlier and revenue remaining essentially flat at around $7.08 billion, missing analyst expectations by $560 million. Despite the earnings dip, Fannie Mae delivered $76 billion in liquidity to the housing market, supporting first-time homebuyers and affordable housing initiatives, and saw its net worth grow to $98.31 billion. The company’s financials also reflected increased administrative and credit enhancement expenses, as well as a shift from a credit loss benefit to a small provision. Analysts remain cautious, with average one-year price targets significantly below the current trading price and a consensus rating of 'Underperform.' Leadership has indicated ongoing efforts to streamline operations and improve efficiency. Home prices nationally rose 1.4% in the first quarter, with notable regional variation.