Federal Nat Stock Price, News & Analysis

Fannie Mae (OTCQB: FNMA) has updated its Equitable Housing Finance Plan, reaffirming its commitment to improving housing access for underserved communities, particularly Black and Latino individuals. The updated plan outlines 25 initiatives aimed at reducing homeownership costs, enhancing educational resources, and promoting housing stability. Key actions include expanding down payment assistance programs, utilizing mortgage-backed securities for broader access, and providing enhanced consumer education and counseling. The plan is a continuation of Fannie Mae's multi-year effort to eliminate barriers in the housing market.

Fannie Mae (OTCQB: FNMA) has released its February 2023 Monthly Summary, detailing key metrics affecting its operations. The report highlights activities concerning its gross mortgage portfolio, mortgage-backed securities, and various guarantees. It also includes measures regarding interest rate risk and serious delinquency rates. This monthly summary aims to provide transparent insights into Fannie Mae's financial health and market position, contributing to its mission to enhance sustainable access to homeownership and affordable rental housing across the U.S.

On March 27, 2023, Fannie Mae (OTCQB: FNMA) announced the execution of two Credit Insurance Risk Transfer™ (CIRT™) transactions, transferring $926 million of mortgage credit risk to private insurers and reinsurers. The CIRT 2023-2 and CIRT 2023-3 involve approximately 44,000 and 54,000 single-family mortgage loans, respectively, with unpaid principal balances of $13.8 billion and $18 billion. This reduces taxpayer risk and emphasizes private capital's role in the mortgage market. Since inception, Fannie Mae has acquired $23.5 billion in insurance coverage on $793 billion of loans through the CIRT program.

Fannie Mae's Economic and Strategic Research Group has revised its GDP forecast for Q1 2023, now expecting a modest recession to start in the second half of 2023, pushed back from Q2 2023. Increased instability in the banking sector is likely to affect lending and consumer confidence. The ESR Group anticipates that home sales will remain subdued due to affordability constraints and the 'lock-in effect' preventing homeowners from moving. They also caution that current banking issues may restrict jumbo mortgages and construction loans. However, they note that the housing market could moderate any future recession.

On March 15, 2023, Fannie Mae (OTC: FNMA) announced the appointment of Michael Seelig to its Board of Directors and the Audit Committee. Seelig brings over 35 years of experience in financial services, having previously served as a senior executive at PricewaterhouseCoopers. His extensive background in financial management, risk management, and corporate governance is expected to enhance the board’s diversity and efficacy. Chair Michael J. Heid and CEO Priscilla Almodovar expressed confidence in Seelig's capabilities to further Fannie Mae's mission to improve access to homeownership and affordable rental housing across the U.S.

Fannie Mae (OTCQB: FNMA) executed its first Credit Insurance Risk Transfer™ (CIRT™) transaction of 2023, transferring $407.5 million of mortgage credit risk to private insurers. This transaction covers approximately 35,000 mortgage loans with an unpaid principal balance of $11.8 billion. Since the program's inception, Fannie Mae has secured about $22.6 billion in insurance coverage on $761 billion of single-family loans. Fannie Mae will retain risk for 75 basis points of loss, with reinsurers covering the next 345 basis points up to $407.5 million. The CIRT 2023-1 transaction aims to mitigate taxpayer risk by enhancing private capital's role in the mortgage market.