Fannie Mae posted an “illustrative” return on equity of 9.5% during its second-quarter earnings call last month. But that was based on the enterprise’s required capital rather than the capital actually on hand.

New business may be up for both the single-family and multifamily businesses, but loan loss provisions due to softening home price growth cut into profits at both Fannie and Freddie. (Includes data table.)

Freddie’s guarantee book of business rose from $3.104 trillion at the end of 2024 to $3.115 trillion as of the end of March. Fannie’s fell from $3.622 trillion to $3.610 trillion. (Includes data table.)

The sign of a good business model is one that makes profits in good times and bad. Fannie and Freddie have shown strong profits throughout the post-pandemic downturn. (Includes data table.)

It’s the first time Freddie’s MBS business has been larger than Fannie’s on an annual basis since 1991.

Remarkably steady net revenues at the GSEs mean fluctuations in profits are mostly due to below-the-line expenses. (Includes data table.)

Although FHLB borrowing declined in the first quarter, with lenders continuing to reduce outstanding advances, profits for the system as a whole were up 9.6% from the fourth quarter and 16.6% year to date. (Includes three data tables.)

Even though Fannie Mae and Freddie Mac maintained healthy profits in a tough market in the first quarter, their capital shortfalls under the ERCF remained absurdly high. (Includes data table.)

Lingering capital shortfalls belie higher net incomes at Fannie Mae and Freddie Mae in 2023. (Includes data table.)

Measured by profits per employee, Fannie Mae and Freddie Mac are among the most successful companies on the planet.