Fannie Mae posts $14.4B profit for 2025 as MBS purchases rise

"Fannie Mae reported $14.4 billion in profit for 2025, a year in which it provided $409 billion in liquidity to the mortgage market and increased its purchases of mortgage-backed securities (MBS), the company said Wednesday."

"Net income declined by $2.6 billion from the prior year, primarily due to a $1.8 billion shift from a benefit for credit losses to a provision for credit losses, along with a $1.7 billion decrease in fair value gains in 2025."

"The enterprise cut its workforce by about 1,200 employees, scaled back contractors and renegotiated key contracts while paying $95 million more in severance."

"During the quarter, the majority of fair-value losses were driven by the compression in interest rate spreads, which are not covered by hedge accounting, said chief financial officer Chryssa C. Halley."

Fannie Mae posted $14.4 billion in profit for 2025 while providing $409 billion in liquidity and increasing purchases of mortgage-backed securities. Net income fell $2.6 billion year-over-year, driven by a $1.8 billion swing from a benefit to a provision for credit losses and a $1.7 billion decline in fair value gains. The company finished the year with a net worth of $109 billion and guaranteed an estimated 25% of single-family and 21% of multifamily mortgage debt. Administrative expenses fell by $40 million and total noninterest expenses declined $141 million amid a workforce reduction of about 1,200, contractor reductions, contract renegotiations and $95 million in additional severance. Fourth-quarter earnings dropped to $3.5 billion as fair-value losses reflected compressed interest rate spreads not covered by hedge accounting; fourth-quarter net revenues were $7.3 billion.

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