Federal Nat Stock Price, News & Analysis

Fannie Mae (OTCQB: FNMA) announced the execution of its seventh and eighth Credit Insurance Risk Transfer™ (CIRT™) transactions of 2022, transferring $1 billion of mortgage credit risk to private insurers. CIRT 2022-7 covers $19.8 billion in loans, while CIRT 2022-8 covers $12.9 billion. The company retains risk on the first 55 to 65 basis points before insurers cover further losses. Since inception, Fannie Mae has secured $21 billion of insurance on $709 billion in loans through the CIRT program, mitigating taxpayer risk and promoting private capital involvement.

Fannie Mae Appoints New Chief Human Resources Officer

Fannie Mae (OTCQB: FNMA) has appointed Katie Jones as Senior Vice President and Chief Human Resources Officer, effective August 1, 2022. With over 30 years of experience in HR within the financial services, Jones aims to enhance talent strategy and foster a diverse workplace. Her prior roles include top HR positions at PRA Group and SunTrust Bank. The leadership change is expected to strengthen the company's ability to attract and support talent, aligning with its mission to serve renters and homeowners effectively.

Fannie Mae plans to report its second quarter 2022 financial results on July 29, 2022, before market opening. A conference call to discuss the results will be held at 8:00 a.m. ET on the same day. The financial results will be available on their financial results webpage. Investors can listen to the call via a webcast or by phone.

On July 15, 2022, Fannie Mae (OTCQB: FNMA) announced the successful sale of approximately 4,390 reperforming loans, totaling $889.75 million in unpaid principal balance. This transaction, finalized on June 9, 2022, involves two awarded pools with Pool 1 sold to PIMCO and Pool 3 sold to Kah Capital, with Pool 2 remaining unsold. The deal is set to close on August 19, 2022. Reperforming loans require buyers to provide loss mitigation options for borrowers, ensuring support to prevent re-defaults.

Fannie Mae reports that single-family home prices increased at an annualized rate of 19.4% in Q2 2022, a slight decrease from 20.5% in the previous quarter. Quarterly, home prices rose by 4.3%. Demand for homes remains strong due to low inventory and preemptive buying to avoid anticipated mortgage rate hikes. However, rising mortgage rates are expected to cool demand and moderate future home price appreciation.

The Fannie Mae Home Purchase Sentiment Index (HPSI) fell by 3.4 points to 64.8 in June, its second-lowest level in a decade, reflecting growing consumer pessimism about homebuying conditions. Only 20% of consumers believe it's a good time to buy a home, while 68% feel it's a good time to sell, down from 76%. An alarming 81% of respondents think the economy is on the wrong track, with increased concerns over job stability and the affordability of mortgages. Year-over-year, the index is down 14.9 points, signaling ongoing challenges in the housing market.

On July 6, 2022, Fannie Mae (OTCQB: FNMA) announced the pricing of a $381 million Multifamily Social DUS REMIC (FNA 2022-M1S), marking its sixth issuance under the GeMS program in 2022. The issuance aims to support affordable housing for low- to moderate-income households, benefiting over 2,680 units. This offering adheres to Fannie Mae's Sustainable Bond Framework, highlighting its commitment to socially responsible investments. All classes are guaranteed by Fannie Mae for timely payment of interest and principal.

Fannie Mae (OTCQB: FNMA) announced the results of its cash tender offers for Connecticut Avenue Securities (CAS) Debt Notes, which concluded on June 30, 2022. Approximately $4.402 billion in original principal amount of notes were tendered, representing 82.22% of the total $5.354 billion in notes eligible for the offer. The settlement for accepted tenders is expected on July 5, 2022. BofA Securities and Barclays served as lead managers for the offer, and Global Bondholder Services acted as the tender agent.