Federal Nat Stock Price, News & Analysis

Fannie Mae (OTCQB: FNMA) announced the completion of its tenth Credit Insurance Risk Transfer™ (CIRT™) transaction of 2022, transferring $265 million in mortgage credit risk. This effort aims to reduce taxpayer risk by leveraging private capital in the mortgage market. The CIRT 2022-10 covers about 31,000 single-family loans with a total unpaid balance of $9.6 billion. Fannie Mae retains risk for the first 75 basis points of loss, with coverage extending for a term of 12.5 years and potential cancellation after five years.

Home prices in the U.S. saw a 13.8% increase in Q3 2022, down from 19.1% in the previous quarter, according to Fannie Mae's Home Price Index (FNM-HPI). While prices rose 0.2% quarterly, it marked the slowest growth since Q4 2011. The rise in mortgage rates and declining housing affordability are affecting demand, causing fewer homes to be listed. Doug Duncan, Fannie Mae's Chief Economist, highlighted that the increasing inventory of new homes may require builders to offer price concessions. These trends are expected to persist in upcoming months.

The housing market is projected to decline significantly due to rising mortgage rates and inflationary pressures.

The Fannie Mae Economic and Strategic Research Group expects a modest recession in early 2023, forecasting a 0.1% contraction in 2022 GDP and a further 0.5% decrease in 2023. Total single-family home sales are predicted to drop to 5.64 million in 2022 and 4.47 million in 2023, representing declines of 18.1% and 20.8%, respectively. Year-over-year home price growth is expected to turn negative by Q2 2023, with an average forecast decline of 1.5% for the year.

Fannie Mae's Home Purchase Sentiment Index (HPSI) declined 1.2 points in September to 60.8, marking its seventh consecutive monthly drop. This shift reflects growing affordability constraints, with consumers believing mortgage rates will rise further. Only 19% view it as a good time to buy a home, down from 22%, while 59% feel it's a good time to sell. Year-over-year, the index is down 13.7 points. Notably, the percentage of consumers expecting home prices to decline reached a survey high. The economic outlook remains cautious as affordability issues persist, affecting home sales.

Fannie Mae (OTCQB: FNMA) announced its twenty-eighth sale of reperforming loans, comprising around 10,400 loans with an unpaid principal balance of approximately $1.95 billion. This move is part of Fannie Mae's strategy to reduce its mortgage portfolio. Bids for the loans, marketed with Citigroup Global Markets, are due by November 1, 2022. Buyers are required to provide loss mitigation options for borrowers potentially re-defaulting within five years. Interested bidders can register for more information on Fannie Mae's website.

Fannie Mae (OTCQB: FNMA) has released its August 2022 Monthly Summary, detailing key metrics regarding its gross mortgage portfolio, mortgage-backed securities, and serious delinquency rates. The report highlights activities year-to-date, offering insights into the organization’s financial health and interest rate risk measures. Fannie Mae continues to focus on its mission to enhance access to homeownership and affordable rental housing across the U.S.

Fannie Mae (FNMA) is reminding homeowners and renters affected by Hurricane Ian, particularly in Florida and the southeastern U.S., about available mortgage assistance and disaster relief options. Homeowners can request support through their mortgage servicer and may qualify for a 90-day forbearance plan. They may also reduce or suspend payments for up to 12 months without incurring late fees. Additionally, Fannie Mae's Disaster Response Network offers personalized recovery plans, financial relief assistance, and ongoing guidance for up to 18 months, available in multiple languages.

Fannie Mae (FNMA) has launched the Multifamily Positive Rent Payment Reporting pilot program, effective September 27, 2022. This initiative enables eligible multifamily property owners to report rent payments to credit bureaus, helping renters build their credit history and improve credit scores. The program aims to promote equitable access to credit, especially for underrepresented groups with limited credit histories. Fannie Mae will cover associated costs for 12 months to encourage participation among borrowers.