Fannie Mae reported $4.2 billion in third-quarter net income on October 28, up from $4.0 billion in the preceding quarter, according to its financial results release.
Net revenues rose to $7.7 billion from $7.6 billion. Fannie Mae said higher revenues and a shift from fair value losses to gains helped profit, partly offset by an increased credit loss provision.
The provision reached $1.14 billion, compared with $485 million in the second quarter. The company cited higher actual and projected interest rates, newly acquired loans and new delinquencies in its single-family business. Its multifamily provision reflected weakening loan credit metrics and a lower near-term property value forecast, among other factors.
Single-family serious delinquencies increased to 0.62% at September 30 from 0.58% three months earlier. The company defines these as loans at least 90 days past due or in foreclosure.
Fannie Mae's net worth reached $119.6 billion. It said it provided $103 billion in mortgage market liquidity during the quarter, supporting home purchases, refinancings and rental housing.
Sources: Fannie Mae third-quarter financial results release.