Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) created by Congress to provide liquidity, stability, and affordability to the U.S. mortgage market, have announced their first quarter 2026 financial results.
Fannie Mae reported that it earned $3.7 billion in net income for the first quarter of 2026, compared with $3.5 billion for the fourth quarter of 2025, and increased its net worth to $112.7 billion as of March 31, 2026. Fannie said that net revenues were steady compared with the fourth quarter of 2025; the increase in net income was primarily driven by a shift from fair value losses to gains and lower administrative expenses, partially offset by a shift from investment gains to losses.
Freddie Mac, meanwhile, reported net income of $3.6 billion for the first quarter of 2026. That was up 27% from the first quarter of 2025, mostly driven by higher net revenues and a credit reserve release in the current period compared to a credit reserve build in the first quarter of 2025, the GSE said.
Leaner Company
“Fannie Mae is a far more effective and leaner company than it was a year ago, with solid earnings, lower expenses, and $112.7 billion in net worth. A financially sound and dependable Fannie Mae is essential to the long-term health of the housing and mortgage markets,” William J. Pulte, Director, U.S. Federal Housing, and Chairman, Fannie Mae Board of Directors, said in a release.
Peter Akwaboah, Acting Chief Executive Officer and Chief Operating Officer of Fannie Mae, noted its strong balance sheet.
“Fannie Mae’s first quarter net income of $3.7 billion reflects the health of our guaranty business, the discipline of our execution, and the strength of our balance sheet. We remain focused on our mission — to provide uninterrupted liquidity in all economic cycles to support stability and affordability to the U.S. housing market,” Akwaboah said.
Freddie Mac reported that net revenues were $6.1 billion for the first quarter of 2026, up 5% year-over-year, mostly driven by higher net interest income, partially offset by lower non-interest income. The GSE said that net interest income for the first quarter of 2026 was $5.6 billion, up 10% year-over-year, primarily driven by an increase in the balance of fully guaranteed securitizations in the multifamily mortgage portfolio due to the change in multifamily business strategy, continued mortgage portfolio growth in single-family, and growth in the mortgage-related investments portfolio.
Non-interest income for the first quarter of 2026 was $0.5 billion, down 31% year-over-year, primarily driven by lower guarantee income and lower net investment gains, Freddie Mac said.
