Fannie Mae Earns $4.2 Billion in Q3 as Credit Loss Provision Rises to $1.1 Billion
Fannie Mae's third-quarter net income rose to $4.2 billion and net worth reached $119.6 billion. Its credit loss provision more than doubled and serious delinquency rose to 0.62%.
By Scott Baker · 4 min read
Fannie Mae earned $4.2 billion in net income in the third quarter of 2026, up from $4.0 billion in the second quarter, the company said Wednesday, Oct. 28, as it filed its quarterly Form 10-Q. Its net worth rose to $119.6 billion as of Sept. 30, but the company also set aside more for expected credit losses as delinquencies ticked higher.
The headline numbers
| Measure | 3Q 2026 | 2Q 2026 | 3Q 2025 |
|---|---|---|---|
| Net income | $4,177 | $3,982 | $3,859 |
| Net revenues | $7,651 | $7,565 | $7,307 |
| Credit loss provision | $1,140 | $485 | $338 |
| Net worth | $119,637 | $116,497 | $105,485 |
| SF serious delinquency | 0.62% | 0.58% | 0.54% |
| MF serious delinquency | 0.62% | 0.60% | n/a |
| SF acquisitions | $88.3B | $111.2B | n/a |
Source: Fannie Mae third quarter 2026 earnings release, Oct. 28, 2026. Single-family serious delinquency covers loans 90 or more days past due or in foreclosure; multifamily covers loans 60 or more days past due.
Net income was 5% higher than the prior quarter and 8% higher than a year earlier. Net worth grew $3.1 billion in the quarter and 13% from a year ago. Fannie Mae's guaranty book of business held at about $4.1 trillion.
Why income rose while credit costs climbed
Fannie Mae said the increase in net income reflected a shift from fair value losses to gains, partly offset by the higher credit loss provision. Net revenues, mostly guaranty fees, rose to $7.7 billion, which the company attributed mainly to higher net interest income from its portfolios.
The $1.1 billion provision compares with $485 million in the second quarter. Fannie Mae said the single-family portion primarily reflects higher actual and projected interest rates, newly acquired loans and newly delinquent loans. It said the multifamily portion reflects weakening credit metrics. Serious delinquency rose to 0.62% in both books.
Lending activity slowed
Single-family conventional acquisitions fell to $88.3 billion from $111.2 billion in the second quarter. Fannie Mae said it provided $103 billion of liquidity in the quarter, enabled about 356,000 home purchases and helped nearly 103,000 first-time homebuyers. Year to date, the company said it has provided $344 billion of liquidity and helped more than 295,000 first-time homeowners. Multifamily acquisitions rose slightly to $14.5 billion.
What it means and does not mean
These are financial results for a company in federal conservatorship that guarantees mortgages. They are not a forecast for mortgage rates, and a higher profit does not translate into lower prices for individual borrowers. The rising provision and delinquency figures are worth watching as indicators of borrower stress.
Fannie Mae held a webcast at 8 a.m. Eastern on Oct. 28 and said a transcript will be posted to its financial results page. Quotes and explanations in this article come from the written release and filing.
Sources: Fannie Mae, third quarter 2026 financial results announcement, Oct. 28, 2026; Fannie Mae financial results page (earnings release and Form 10-Q). Cover photo: Fannie Mae Midtown Center, Washington, D.C., by Ajay Suresh, June 21, 2024, CC BY 2.0, via Wikimedia Commons, cropped.