Fannie Mae Reports Lower 2025 Profit but Reaches Record $109 Billion Net Worth

Government-sponsored mortgage giant Fannie Mae closed out 2025 with a stronger balance sheet, even as profits declined compared to the prior year.

The company reported net income of $3.5 billion for the fourth quarter and $14.4 billion for the full year. That marks a 15% drop from 2024 earnings. At the same time, Fannie Mae’s net worth climbed to a record $109 billion as of December 31, 2025.

Net revenues held steady at $7.3 billion in the fourth quarter and $29 billion for the year. A large share of that revenue came from guaranty fees tied to its $4.1 trillion mortgage book of business.

Record Net Worth Despite Lower Profit

Company leadership highlighted the milestone in net worth as a key achievement.

William J. Pulte, Director of U.S. federal housing and board chair of Fannie Mae, said the company’s financial position is stronger than ever. He also noted that annual administrative expenses declined for the first time in four years, which could support long-term stability.

Peter Akwaboah, Acting CEO and COO, pointed out that Fannie Mae has now delivered 14 consecutive years of annual profitability. According to management, this consistency reflects the strength of its core guaranty business and partnerships with lenders nationwide.

Chief Financial Officer Chryssa C. Halley added that steady revenue and controlled costs helped the company remain on solid ground, even in a shifting housing market.

Why Profits Declined in 2025

The drop in earnings was largely tied to credit-related costs.

In 2024, the company recorded a benefit related to credit losses. In 2025, that shifted to a $1.6 billion provision for credit losses. Fair value gains also declined by $1.7 billion year over year.

In the fourth quarter alone, Fannie Mae set aside $298 million for credit losses. Much of this was linked to newly acquired single-family loans and a rise in mortgage delinquencies. Non-interest expenses increased to $2.4 billion in the quarter.

While delinquency levels remain well below crisis-era highs, the increase shows that affordability pressures and higher interest rates are affecting some borrowers.

Strong Loan Volume in 2025

Despite lower profits, Fannie Mae played a major role in supporting housing activity during the year.

In 2025, the company enabled financing for approximately:

• 1.5 million home purchases, refinances, and rental units
• 704,000 purchase loans
• 283,000 refinances in the fourth quarter alone

The company also reported its highest multifamily acquisition volume in five years, reflecting continued demand for rental housing.

On the single-family side, business picked up in the fourth quarter as more homeowners chose to refinance. Lower mortgage rates late in the year likely contributed to that increase.

Jake Williamson, Executive Vice President and Head of Single-Family, said the company plans to focus in 2026 on making the mortgage process more efficient and lowering costs for lenders and borrowers.

What Fannie Mae’s 2025 Earnings Mean for the Housing Market

Fannie Mae’s results reflect a housing market that remains active but cautious.

Key takeaways from the Fannie Mae 2025 earnings report:

• Profit declined due to higher credit loss provisions.
• Net worth reached a record $109 billion.
• Revenue remained stable year over year.
• Purchase and refinance activity increased late in the year.
• Multifamily financing showed renewed strength.

The record net worth strengthens Fannie Mae’s capital position and provides a larger cushion against potential economic slowdowns. At the same time, rising delinquencies signal that some borrowers are feeling pressure from higher housing costs and interest rates.

Looking Ahead to 2026

As 2026 begins, Fannie Mae enters the year with a stronger capital base and steady revenue. However, market conditions remain uncertain.

Mortgage rates, home prices, and borrower affordability will likely shape loan demand in the months ahead. If rates continue to stabilize or decline, refinance activity could increase further. If economic conditions weaken, credit costs may rise again.

For now, Fannie Mae remains a central pillar of the U.S. mortgage system, supporting millions of homebuyers and renters while building its financial reserves to record levels. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.