Federal Nat Stock Price, News & Analysis

The Home Purchase Sentiment Index (HPSI) from Fannie Mae decreased by 2.4 points to 71.8 in January 2022, marking its lowest level since May 2020. This decline, attributed to affordability constraints, reflects a growing pessimism among consumers, particularly younger households, about homebuying prospects. Only 25% of respondents view it as a good time to buy a home, while 70% believe it's a bad time. The index is down 5.9 points year-over-year, signaling potential slowing housing activity in the coming year.

On February 2, 2022, Fannie Mae priced its Connecticut Avenue Securities (CAS) Series 2022-R02, a $1.2 billion note offering, marking its second CAS REMIC transaction of the year. The reference pool consists of approximately 149,000 single-family mortgage loans totaling around $44 billion, acquired between January and April 2021. Fannie Mae retains significant tranches of the offering. With this deal, Fannie Mae has issued over $52 billion in CAS notes, transferring credit risk from nearly $1.8 trillion in single-family loans, aimed at enhancing market transparency.

Fannie Mae (OTCQB: FNMA) has released its December 2021 Monthly Summary, detailing key metrics of its operations including the gross mortgage portfolio, mortgage-backed securities, interest rate risk measures, and delinquency rates.

This report provides insights into Fannie Mae's activities for the month and year-to-date, reflecting its ongoing commitment to enhance access to homeownership and affordable housing.

The Fannie Mae Economic and Strategic Research (ESR) Group anticipates a "new normal" for the housing market and economy in 2022, with a projected home price appreciation of 7.6%, significantly lower than 2021's 17.3%. Economic growth is expected to slow, with real GDP growth at 5.5% for 2021 and 3.1% for 2022. Inflation is projected to average 7.0% in Q1 2022, tapering to 4.0% by year-end, prompting the Fed to likely raise interest rates three times in 2022. Key risks include inflation and supply chain disruptions, which may affect housing affordability.

Fannie Mae has received new credit ratings for its previously unrated Connecticut Avenue Securities (CAS) notes, increasing their market eligibility and liquidity potential. The ratings reflect improved credit protection and performance of the underlying assets, attributed to enhanced loan performance and home price appreciation, resulting in lower expected losses. With 44 CAS deals and over $50 billion issued, Fannie Mae has effectively transferred a substantial amount of credit risk. This move aims to foster growth in the secondary market.

Fannie Mae (OTCQB: FNMA) financed nearly $70 billion to support the multifamily market in 2021, marking a significant achievement as funding for multifamily affordable housing rose by 23% to a record high. The organization remained a crucial liquidity source for borrowers and renters amid pandemic disruptions. Multifamily affordable housing volumes hit $9.6 billion, up from $7.8 billion in 2020, while green financing reached $13.5 billion. Fannie Mae aims to enhance affordable housing availability and sustainable rentals moving forward.

Fannie Mae announced the launch of HomeView™, a free online homeownership education course aimed at empowering consumers in the mortgage and homebuying process. Accessible on any device, this course addresses common knowledge gaps among aspiring homebuyers. Recent research shows many are unaware of necessary credit scores and down payment options. HomeView aligns with National Industry Standards and includes interactive modules covering various aspects of homeownership. The initiative seeks to promote housing equity, particularly among low- and moderate-income and minority borrowers.

Fannie Mae (OTCQB: FNMA) has priced its Connecticut Avenue Securities® (CAS) Series 2022-R01, a $1.5 billion note offering. This is the first CAS REMIC® transaction of the year, aimed at sharing credit risk on Fannie Mae's single-family conventional guaranty book. The reference pool includes ~180,000 mortgage loans, totaling nearly $54 billion. Fannie Mae retains risk in several tranches, while BofA Securities leads the structuring. To date, Fannie Mae has issued over $51 billion in CAS notes, transferring credit risk on nearly $1.7 trillion in loans.