Federal Nat Stock Price, News & Analysis

The July 2021 commentary from Fannie Mae's Economic and Strategic Research Group projects a 7.0% real GDP growth for the year, with shifts in the growth sources. Second-quarter growth revised down to 8.1%, while third and fourth quarters expected at 7.1% and 6.6%. Home price forecast significantly raised to 14.8% annualized due to high demand amidst limited supply. However, growth in home prices projected to moderate to 5.1% in 2022. Risks include COVID-19, supply chain issues, and inflation. Mortgage originations expected at $4.2 trillion.

Fannie Mae (OTCQB: FNMA) has completed its twenty-first reperforming loan sale, selling approximately 12,100 loans totaling $1.58 billion in unpaid principal balance. The sale, conducted in four pools, was awarded to DLJ Mortgage Capital, Inc. and RCF II Loan Acquisition, LP. The winning bids represented varying percentages of the unpaid principal balance. The transaction is set to close on August 26, 2021. This move continues Fannie Mae's efforts to create housing opportunities while managing risks associated with its loan portfolio.

The Fannie Mae Home Purchase Sentiment Index (HPSI) remains relatively unchanged, decreasing by 0.3 points to 79.7 for June 2021. While overall sentiment is up 3.2 points year-over-year, notable declines in homebuying sentiment are evident, with 64% of respondents indicating it’s a bad time to buy, up from 56% in May. Conversely, 77% believe it's a good time to sell, showing an increase from 67%. Concerns over high home prices persist, and although pessimism exists in homebuying conditions, demand for housing is expected to stay elevated through the rest of the year due to favorable mortgage rates.

Fannie Mae's May 2021 Monthly Summary has been released, detailing its gross mortgage portfolio, mortgage-backed securities, and other guarantees. The report also covers interest rate risk measures, serious delinquency rates, and loan modifications. This summary is essential for understanding Fannie Mae's performance in housing finance, enabling access to affordable rental housing and the 30-year fixed-rate mortgage for millions in America.

Fannie Mae (OTCQB: FNMA) priced an $879 million Green Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on June 16, 2021. This issuance marks the seventh GeMS of 2021 and is backed entirely by collateral with a Fannie Mae-recognized Green Building Certification. Fannie Mae's Multifamily Green Financing has seen over $95 billion issued in MBS, with an additional $12.6 billion in REMICs. The program emphasizes positive environmental and social impact through green financing products.

On June 16, 2021, Fannie Mae (FNMA) released its annual Green Bond Impact Report, highlighting its significant contributions to sustainable housing. As the world's largest green bond issuer, it has issued nearly $88 billion in Multifamily Green Mortgage-Backed Securities since 2012, with $13 billion issued in 2020 alone. The report emphasizes substantial environmental benefits, including energy savings of 9.5 billion kBtu and the prevention of 634,000 metric tons of CO2 emissions. The initiative also supports economic growth, with $9.5 billion in wages paid for construction and renovations.

Fannie Mae's Economic and Strategic Research Group has revised its 2021 economic growth forecast to 7.1%, up from previous estimates, driven by robust consumer spending. However, growth is projected to slow to 5.5% in Q4 2021 and 2.2% in Q4 2022. Inflation expectations have risen, with predictions of around 5% through the end of 2021, likely influenced by ongoing housing demand and supply constraints. Home sales forecasts for Q2 and Q3 have been downgraded due to limited listings and construction challenges. The group's mortgage rate outlook remains stable at 3.0% for 2021.