FANNIE MAE - FNMA STOCK NEWS

Fannie Mae's Home Purchase Sentiment Index (HPSI) rose 0.6 points in January 2023 to 61.6, though it is down 10.2 points year-over-year. Only 17% of respondents feel it's a good time to buy, largely due to high mortgage rates and home prices. The majority predict home prices will decline or remain flat, influencing potential buyers to delay decisions. However, sentiment on selling improved; 59% view it as a good time to sell, up from 51%. Despite the slight uptick in the HPSI, overall consumer sentiment remains low compared to pre-pandemic levels, indicating ongoing affordability challenges in the housing market.

Fannie Mae (OTCQB: FNMA) has released its December 2022 Monthly Summary, detailing its gross mortgage portfolio, mortgage-backed securities, interest rate risk measures, and serious delinquency rates.

This summary is key for understanding the company's monthly and year-to-date performance metrics, which lend insight into Fannie Mae's operations and market standing.

Fannie Mae (OTC: FNMA) reported providing over $69 billion in debt financing in 2022 to support affordable housing through its DUS® platform and Low-Income Housing Tax Credit equity. This marked a significant achievement, with Multifamily Affordable Housing volumes rising nearly 7% to $10.3 billion. Structured Transactions surged by 82.6% to $10.3 billion, and Seniors Housing financing rose over 26% to $1 billion. Fannie Mae's LIHTC investments created or preserved more than 35,000 affordable units and committed $1.7 billion in capital for 2021 and 2022.

Fannie Mae forecasts a modest recession beginning in early 2023, driven by elevated mortgage rates and home prices constraining housing activity. The Economic and Strategic Research Group predicts a 0.6% decline in GDP growth for 2023 and a cumulative 6.7% drop in home prices over two years, although they do not foresee a repeat of the Great Financial Crisis. Existing home sales are expected to remain depressed due to affordability issues, while new home sales may outperform. Economic signals indicate a potential soft landing, although a tight labor market could lead to prolonged elevated rates by the Federal Reserve.

Fannie Mae (FNMA) has announced the results of its 28th reperforming loan sale, consisting of approximately 10,100 loans totaling $1.9 billion in unpaid principal balance. The transactions, divided into five pools, have winning bidders including PIMCO and JP Morgan. The deal is expected to close by February 23, 2023. Each pool showcases a mix of loan sizes, weighted average note rates, and loan-to-value ratios. The loan sale requires buyers to provide loss mitigation options for borrowers at risk of re-defaulting within five years. This initiative supports Fannie Mae's mission to facilitate homeownership access.

Fannie Mae's latest Home Price Index (FNM-HPI) report indicates a decline in annual home price growth to 9.2% in Q4 2022, a significant drop from 13.1% the previous quarter. Non-seasonally adjusted, home prices fell by 1.0% from Q3 2022, while seasonally adjusted prices rose 0.2%. Rising mortgage rates and inflation are squeezing buyer affordability, contributing to a slowdown in home sales and reduced supply due to homeowners' reluctance to give up lower-rate mortgages. The FNM-HPI serves as a key indicator of single-family home price trends in the U.S.

Fannie Mae (OTC-PINK: FNMA) has confirmed its transition from legacy LIBOR loans to SOFR-indexed benchmarks as per the Federal Reserve Board's guidance. Announced on December 22, 2022, this transition excludes the term SOFR index for new loans or floating-rate securities, impacting products like Multifamily ARMs and Single-Family Credit Risk Transfer securities. Fannie Mae will not convert existing 30-day Average SOFR loans to term SOFR. The company plans to update its LIBOR Transition webpages soon, reinforcing its commitment to adapting to market changes.

Fannie Mae (OTCQB: FNMA) has successfully priced its Connecticut Avenue Securities (CAS) Series 2023-R01, a $731 million note offering, marking its first CAS REMIC transaction of the year. The reference pool encompasses approximately 68,000 single-family mortgage loans with an unpaid principal balance of $22.6 billion, acquired between January and February 2022. Notably, Fannie Mae retains portions of the first-loss tranches, enhancing its credit risk management strategy. With this deal, Fannie Mae has issued over $59 billion in notes through 54 CAS deals overall.

The Fannie Mae Home Purchase Sentiment Index (HPSI) rose by 3.7 points in December 2022 to 61.0, yet remains significantly below pre-pandemic levels. Despite a slight upturn, year-over-year the index is down 13.2 points, highlighting ongoing affordability issues due to high mortgage rates and home prices. Only 21% of consumers believe it is a good time to buy a home, attributed to persisting economic concerns. As 2023 begins, affordability continues to challenge potential homebuyers, with expectations that existing homeowners will hesitate to sell until rates improve.