Federal National Mortgage Association (FNMA) 8-K Fannie Mae Reports Net Income of $4.5 Billion for Second Quarter 2024

Contact:     Pete Bakel      Resource Center: 1-800-232-6643

    202-752-2034                                     Exhibit 99.1

Date:    July 30, 2024

Fannie Mae Reports Net Income of $4.5 Billion for Second Quarter 2024

•	$4.5 billion net income for the second quarter of 2024, with net worth reaching $86.5 billion as of June 30, 2024	“Fannie Mae had another strong quarter, generating $4.5 billion in net income. Our net worth reached $86.5 billion, further strengthening our financial stability, and our capital position continued to improve. This quarter, we provided $95 billion in liquidity to the housing market, helping 330,000 households buy, refinance, or rent a home. Half of our single-family purchase acquisitions this quarter were loans made to first-time homebuyers, demonstrating that today’s housing affordability pressures have not changed the desire to own a home. That’s why managing risk and partnering with the industry to help consumers on their housing journeys remain top priorities.” Priscilla Almodovar President & Chief Executive Officer
•	Net income increased $164 million in the second quarter of 2024 compared with the first quarter of 2024, primarily driven by increases in net interest income and benefit for credit losses
•	$95 billion in liquidity provided in the second quarter of 2024, which enabled the financing of approximately 330,000 home purchases, refinancings, and rental units
•	Acquired approximately 213,000 single-family purchase loans, of which approximately half were for first-time homebuyers, and approximately 45,000 single-family refinance loans during the second quarter of 2024
•	Financed approximately 72,000 units of multifamily rental housing in the second quarter of 2024; a significant majority were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing
•	Home prices grew 3.0% on a national basis in the second quarter of 2024 according to the Fannie Mae Home Price Index
•	The U.S. weekly average 30-year fixed-rate mortgage rate increased from 6.79% as of the end of the first quarter of 2024 to 6.86% as of the end of the second quarter of 2024

Q2 2024 Key Results
$86.5 Billion Net Worth	$168 Billion Supporting Housing Activity
Increase of $4.5 billion in the second quarter of 2024		SF Home Purchases	SF Refinancings	MF Rental Units

$4.5 Billion Net Income for Q2 2024	Serious Delinquency Rates
Increase of $164 million compared with first quarter 2024		Single-Family SDQ Rate	Multifamily SDQ Rate

Second Quarter 2024 Results 1

Summary of Financial Results
(Dollars in millions)	Q224		Q124		Variance		% Change		Q223		Variance		% Change
Net interest income	$	7,268	$	7,023	$	245	3	%	$	7,035	$	233	3	%
Fee and other income	68		72		(4)		(6)	%	70		(2)		(3)	%
Net revenues	7,336		7,095		241		3	%	7,105		231		3	%
Investment gains (losses), net	(62)		22		(84)		NM		25		(87)		NM
Fair value gains (losses), net	447		480		(33)		(7)	%	404		43		11	%
Administrative expenses	(939)		(929)		(10)		(1)	%	(864)		(75)		(9)	%
Benefit (provision) for credit losses	300		180		120		67	%	1,266		(966)		(76)	%
TCCA fees	(859)		(860)		1		—	%*	(856)		(3)		—	%*
Credit enhancement expense(1)	(405)		(419)		14		3	%	(384)		(21)		(5)	%
Change in expected credit enhancement recoveries	37		63		(26)		(41)	%	(160)		197		NM
Other expenses, net(2)	(251)		(199)		(52)		(26)	%	(257)		6		2	%
Income before federal income taxes	5,604		5,433		171		3	%	6,279		(675)		(11)	%
Provision for federal income taxes	(1,120)		(1,113)		(7)		(1)	%	(1,285)		165		13	%
Net income	$	4,484	$	4,320	$	164	4	%	$	4,994	$	(510)	(10)	%
Total comprehensive income	$	4,477	$	4,324	$	153	4	%	$	4,995	$	(518)	(10)	%
Net worth	$	86,483	$	82,006	$	4,477	5	%	$	69,044	$	17,439	25	%
NM - Not meaningful
* Represents less than 0.5%
(1) Consists of costs associated with freestanding credit enhancements, which primarily include the company’s Connecticut Avenue Securities® (“CAS”) and Credit Insurance Risk TransferTM programs, enterprise-paid mortgage insurance, and certain lender risk-sharing programs.
(2) Includes debt extinguishment gains and losses, expenses associated with legal claims, foreclosed property income (expense), gains and losses from partnership investments, housing trust fund expenses, loan subservicing costs, and servicer fees paid in connection with certain loss mitigation activities.

Financial Highlights
Net income increased $164 million in the second quarter of 2024 compared with the first quarter of 2024, primarily driven by increases in net interest income and benefit for credit losses.
•	Net interest income increased in the second quarter of 2024 compared with the first quarter of 2024 primarily driven by increases in both deferred guaranty fee income and interest income from portfolios.
•	Benefit for credit losses was $300 million in the second quarter of 2024, compared with $180 million in the first quarter of 2024. The benefit for credit losses in the second quarter of 2024 reflects a $548 million single-family benefit for credit losses, partially offset by a $248 million multifamily provision for credit losses. • The single-family benefit for credit losses in the second quarter of 2024 was primarily driven by a benefit from actual and forecasted home price growth, partially offset by a provision on newly acquired loans. • The multifamily provision for credit losses in the second quarter of 2024 was primarily driven by continued declines in estimated actual and near-term projected multifamily property values and the impact of new 30-day loan delinquencies in the company’s multifamily guaranty book of business.

Second Quarter 2024 Results 2

Single-Family Business Financial Results
(Dollars in millions)	Q224		Q124		Variance		% Change		Q223		Variance		% Change
Net interest income	$	6,096	$	5,874	$	222	4	%	$	5,917	$	179	3	%
Fee and other income	51		55		(4)		(7)	%	52		(1)		(2)	%
Net revenues	6,147		5,929		218		4	%	5,969		178		3	%
Investment gains (losses), net	(70)		13		(83)		NM		27		(97)		NM
Fair value gains (losses), net	454		484		(30)		(6)	%	460		(6)		(1)	%
Administrative expenses	(784)		(777)		(7)		(1)	%	(718)		(66)		(9)	%
Benefit (provision) for credit losses	548		335		213		64	%	1,418		(870)		(61)	%
TCCA fees	(859)		(860)		1		—	%*	(856)		(3)		—	%*
Credit enhancement expense	(333)		(353)		20		6	%	(327)		(6)		(2)	%
Change in expected credit enhancement recoveries	(47)		(42)		(5)		(12)	%	(223)		176		79	%
Other expenses, net	(218)		(176)		(42)		(24)	%	(203)		(15)		(7)	%
Income before federal income taxes	4,838		4,553		285		6	%	5,547		(709)		(13)	%
Provision for federal income taxes	(983)		(946)		(37)		(4)	%	(1,153)		170		15	%
Net income	$	3,855	$	3,607	$	248	7	%	$	4,394	$	(539)	(12)	%
Average charged guaranty fee on new conventional acquisitions, net of TCCA fees	51.9 bps		54.8 bps		(2.9) bps		(5)	%	52.2 bps		(0.3) bps		(1)	%
Average charged guaranty fee on conventional guaranty book of business, net of TCCA fees	47.6 bps		47.4 bps		0.2 bps		—	%*	46.8 bps		0.8 bps		2	%
NM - Not meaningful
* Represents less than 0.5%

Key Business Highlights
•	Single-family conventional acquisition volume was $85.9 billion in the second quarter of 2024, compared with $62.3 billion in the first quarter of 2024. Purchase acquisition volume, of which approximately half was for first-time homebuyers, increased to $74.5 billion in the second quarter of 2024 from $53.0 billion in the first quarter of 2024. Refinance acquisition volume was $11.4 billion in the second quarter of 2024, an increase from $9.3 billion in the first quarter of 2024.
•	The average single-family conventional guaranty book of business decreased by $6.4 billion to $3,624.8 billion in the second quarter of 2024 compared with the first quarter of 2024, driven by loan paydowns, liquidations, and sales outpacing acquisition volumes during the quarter. The overall credit characteristics of the single-family conventional guaranty book of business remained strong, with a weighted-average mark-to-market loan-to-value ratio of 50% and a weighted-average FICO credit score at origination of 753 as of June 30, 2024.
•	The average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book remained relatively flat at 47.6 basis points in the second quarter of 2024. The average charged guaranty fee on newly acquired single-family conventional loans, net of TCCA fees, decreased to 51.9 basis points in the second quarter of 2024, primarily as a result of a shift in product mix and an improvement in credit profile.
•	The single-family serious delinquency rate decreased to 0.48% as of June 30, 2024 from 0.51% as of March 31, 2024. Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process.

Second Quarter 2024 Results 3

Multifamily Business Financial Results
(Dollars in millions)	Q224		Q124		Variance		% Change		Q223		Variance		% Change
Net interest income	$	1,172	$	1,149	$	23	2	%	$	1,118	$	54	5	%
Fee and other income	17		17		—		—	%	18		(1)		(6)	%
Net revenues	1,189		1,166		23		2	%	1,136		53		5	%
Fair value gains (losses), net	(7)		(4)		(3)		(75)	%	(56)		49		88	%
Administrative expenses	(155)		(152)		(3)		(2)	%	(146)		(9)		(6)	%
Benefit (provision) for credit losses	(248)		(155)		(93)		(60)	%	(152)		(96)		(63)	%
Credit enhancement expense	(72)		(66)		(6)		(9)	%	(57)		(15)		(26)	%
Change in expected credit enhancement recoveries	84		105		(21)		(20)	%	63		21		33	%
Other expenses, net*	(25)		(14)		(11)		(79)	%	(56)		31		55	%
Income before federal income taxes	766		880		(114)		(13)	%	732		34		5	%
Provision for federal income taxes	(137)		(167)		30		18	%	(132)		(5)		(4)	%
Net income	$	629	$	713	$	(84)	(12)	%	$	600	$	29	5	%
Average charged guaranty fee rate on multifamily guaranty book of business, at period end	75.5 bps		75.8 bps		(0.3) bps		—	%**	77.4 bps		(1.9) bps		(2)	%
* Includes investment gains or losses and other income or expenses.
** Represents less than 0.5%

Key Business Highlights
•	New multifamily business volume was $9.3 billion in the second quarter of 2024, compared with $10.1 billion in the first quarter of 2024.
•	The multifamily guaranty book of business grew by 1% in the second quarter of 2024 to $480.1 billion, driven by the company’s acquisitions combined with low prepayment volumes due to the high interest rate environment.
•	The average charged guaranty fee on the multifamily guaranty book declined slightly in the second quarter to 75.5 basis points as of June 30, 2024, primarily due to lower average charged fees on the company's second quarter 2024 acquisitions as compared with the existing loans in the multifamily guaranty book of business.
•	The multifamily serious delinquency rate was flat at 0.44% as of June 30, 2024 and March 31, 2024. Multifamily seriously delinquent loans are loans that are 60 days or more past due.

Second Quarter 2024 Results 4

Additional Matters

Fannie Mae’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Income for the second quarter of 2024 are available in the accompanying Annex; however, investors and interested parties should read the company’s Second Quarter 2024 Form 10-Q, which was filed today with the Securities and Exchange Commission and is available on Fannie Mae’s website, www.fanniemae.com. The company provides further discussion of its financial results and condition, credit performance, and other matters in its Second Quarter 2024 Form 10-Q. Additional information about the company’s financial and credit performance is contained in Fannie Mae’s “Q2 2024 Financial Supplement” at www.fanniemae.com.

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Second Quarter 2024 Results 5

ANNEX

FANNIE MAE

(In conservatorship)

Condensed Consolidated Balance Sheets — (Unaudited)

(Dollars in millions)

	As of
	June 30, 2024			December 31, 2023
ASSETS
Cash and cash equivalents		$	41,911		$	35,817
Restricted cash and cash equivalents (includes $29,789 and $25,836, respectively, related to consolidated trusts)		36,402			32,889
Securities purchased under agreements to resell		27,650			30,700
Investments in securities, at fair value		49,899			53,116
Mortgage loans:
Loans held for sale, at lower of cost or fair value		646			2,149
Loans held for investment, at amortized cost:
Of Fannie Mae		49,196			48,199
Of consolidated trusts		4,087,398			4,094,013
Total loans held for investment (includes $3,194 and $3,315, respectively, at fair value)		4,136,594			4,142,212
Allowance for loan losses		(8,026)			(8,730)
Total loans held for investment, net of allowance		4,128,568			4,133,482
Total mortgage loans		4,129,214			4,135,631
Advances to lenders		1,856			1,389
Deferred tax assets, net		11,036			11,681
Accrued interest receivable, net (includes $10,654 and $10,132 related to consolidated trusts)		11,156			10,724
Other assets		14,769			13,490
Total assets		$	4,323,893		$	4,325,437
LIABILITIES AND EQUITY
Liabilities:
Accrued interest payable (includes $10,524 and $10,212, respectively, related to consolidated trusts)		$	11,176		$	10,931
Debt:
Of Fannie Mae (includes $544 and $761, respectively, at fair value)		118,543			124,065
Of consolidated trusts (includes $13,239 and $14,343, respectively, at fair value)		4,094,421			4,098,653
Other liabilities (includes $1,673 and $1,713, respectively, related to consolidated trusts)		13,270			14,106
Total liabilities		4,237,410			4,247,755
Commitments and contingencies (Note 14)		—			—
Fannie Mae stockholders’ equity:
Senior preferred stock (liquidation preference of $203,505 and $195,224, respectively)		120,836			120,836
Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding		19,130			19,130
Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 1,158,087,567 shares outstanding		687			687
Accumulated deficit		(46,799)			(55,603)
Accumulated other comprehensive income		29			32
Treasury stock, at cost, 150,675,136 shares		(7,400)			(7,400)
Total stockholders’ equity		86,483			77,682
Total liabilities and equity		$	4,323,893		$	4,325,437

See Notes to Condensed Consolidated Financial Statements in the Second Quarter 2024 Form 10-Q

Second Quarter 2024 Results 6

FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Operations and Comprehensive Income — (Unaudited)

(Dollars in millions, except per share amounts)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Interest income:
Investments in securities		$	915		$	1,101		$	1,836		$	2,082
Mortgage loans		35,617			32,655			70,833			64,792
Other		743			584			1,404			1,036
Total interest income		37,275			34,340			74,073			67,910
Interest expense:
Short-term debt		(130)			(183)			(325)			(302)
Long-term debt		(29,877)			(27,122)			(59,457)			(53,787)
Total interest expense		(30,007)			(27,305)			(59,782)			(54,089)
Net interest income		7,268			7,035			14,291			13,821
Benefit (provision) for credit losses		300			1,266			480			1,134
Net interest income after benefit (provision) for credit losses		7,568			8,301			14,771			14,955
Investment gains (losses), net		(62)			25			(40)			(42)
Fair value gains (losses), net		447			404			927			608
Fee and other income		68			70			140			133
Non-interest income		453			499			1,027			699
Administrative expenses:
Salaries and employee benefits		(496)			(467)			(1,007)			(947)
Professional services		(218)			(192)			(419)			(376)
Other administrative expenses		(225)			(205)			(442)			(409)
Total administrative expenses		(939)			(864)			(1,868)			(1,732)
TCCA fees		(859)			(856)			(1,719)			(1,711)
Credit enhancement expense		(405)			(384)			(824)			(725)
Change in expected credit enhancement recoveries		37			(160)			100			(40)
Other expenses, net		(251)			(257)			(450)			(387)
Total expenses		(2,417)			(2,521)			(4,761)			(4,595)
Income before federal income taxes		5,604			6,279			11,037			11,059
Provision for federal income taxes		(1,120)			(1,285)			(2,233)			(2,293)
Net income		4,484			4,994			8,804			8,766
Other comprehensive income (loss)		(7)			1			(3)			1
Total comprehensive income		$	4,477		$	4,995		$	8,801		$	8,767
Net income		$	4,484		$	4,994		$	8,804		$	8,766
Dividends distributed or amounts attributable to senior preferred stock		(4,477)			(4,995)			(8,801)			(8,767)
Net income (loss) attributable to common stockholders		$	7		$	(1)		$	3		$	(1)
Earnings per share:
Basic		$	0.00		$	0.00		$	0.00		$	0.00
Diluted		0.00			0.00			0.00			0.00
Weighted-average common shares outstanding:
Basic		5,867			5,867			5,867			5,867
Diluted		5,893			5,867			5,893			5,867

See Notes to Condensed Consolidated Financial Statements in the Second Quarter 2024 Form 10-Q

Second Quarter 2024 Results 7