Despite remarkably stable revenues and meaningful improvements in mortgage rates, below-the-line factors at Fannie and Freddie took a significant bite out of profits in 2025. (Includes data table.)

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.)