FANNIE MAE - FNMA STOCK NEWS

Fannie Mae priced a $210 million Multifamily DUS^® REMIC under its GeMS program on September 10, 2021. This issuance is the ninth GeMS issuance of the year. Dan Dresser highlighted that this re-securitization of the Hybrid ARM product offers long-term financing for small building owners, enhancing their options beyond traditional fixed-rate loans. All classes of the new REMIC are guaranteed by Fannie Mae for timely interest and principal payments, with a total offering amount of $210,319,000.

Fannie Mae (OTCQB: FNMA) announced its latest sale of non-performing loans, including its eighteenth Community Impact Pool (CIP), aimed at reducing its retained mortgage portfolio. The sale encompasses four larger pools with approximately 11,400 loans totaling $1.7 billion in unpaid principal balance (UPB) and a CIP of around 140 loans worth $45.2 million in UPB, primarily located in New York. Bids for the larger pools are due on October 5, 2021, and for the CIP on October 19, 2021. Buyers are required to pursue loss mitigation strategies for delinquent borrowers.

Fannie Mae's Q3 2021 Mortgage Lender Sentiment Survey reveals a slight improvement in lenders' profitability outlook. Despite 46% of lenders expecting profit margins to decrease, this is an improvement from 69% in the previous quarter. Mixed expectations for mortgage demand persist, with decreased demand for purchase mortgages but improved demand for refinances. Increased competition and rising personnel costs are primary concerns affecting profitability. The primary-secondary spread remains wider than the decade's average, indicating potential profitability for lenders.

Fannie Mae's Home Purchase Sentiment Index (HPSI) remained stable in August 2021, declining slightly by 0.1 points to 75.7, indicating tempered consumer views on homebuying conditions. Key findings include an increase in the percentage of respondents who believe it's a good time to buy (up to 32%) and a decrease in those expecting home prices to rise (down to 40%). Year-over-year, the index is down 1.8 points. Concerns about job stability are rising, with 15% now expressing worry about job loss, up from 13%. Overall, the sentiment reflects ongoing demand amid rising inflation and the Delta variant concerns.

Fannie Mae has announced an increase in its annual capital for Low-Income Housing Tax Credit (LIHTC) investments from $500 million to $850 million, effective immediately. This decision, approved by the Federal Housing Finance Agency (FHFA), aims to enhance affordable housing in underserved markets. Since returning to the LIHTC market in 2018, Fannie Mae has committed $1.8 billion to support thousands of affordable housing units across the U.S. The new cap aligns with Fannie Mae's mission to address the housing supply shortage for low- and very low-income families.

Fannie Mae (OTCQB: FNMA) has released its July 2021 Monthly Summary, detailing key metrics related to its gross mortgage portfolio, mortgage-backed securities, interest rate risk measures, and loan modifications. The report includes important data on year-to-date activities and serious delinquency rates, reflecting the company's ongoing role in supporting affordable housing in the US. Fannie Mae aims to facilitate the home buying process while managing financial risks effectively.

Fannie Mae (OTCQB: FNMA) is providing mortgage assistance and disaster relief for homeowners affected by Hurricane Ida. Homeowners can request aid through their mortgage servicer, with options for forbearance up to 90 days without contact. They may reduce or suspend payments for up to 12 months, avoiding late fees and foreclosure proceedings during this period. The Disaster Response Network offers personalized plans and help with financial relief applications. Homeowners on COVID-19 forbearance should also reach out for options.

The August 2021 commentary from Fannie Mae's Economic and Strategic Research Group indicates a modest downward revision of real GDP growth for 2021, now projected at 6.3%, influenced by COVID-19 disruptions and supply chain issues. While single-family home sales are expected to decline due to inventory constraints, total home sales are forecasted to increase by 3.1% compared to 2020. The refinance share of mortgage origination is anticipated to rise to 58% in 2021. Inflation is expected to remain around 5% by the end of 2021, with a forecasted decrease to approximately 3% by the end of 2022.

Fannie Mae (OTCQB: FNMA) has commenced marketing its twenty-second sale of reperforming loans, consisting of about 19,100 loans totaling an unpaid principal balance of approximately $2.2 billion. This initiative aims to reduce Fannie Mae's retained mortgage portfolio. Interested bidders must submit bids by September 9, 2021, and are required to offer loss mitigation options to borrowers at risk of re-defaulting. The sale is in partnership with Citigroup Global Markets. More details and registration can be found on Fannie Mae's website.