Earnings call transcript: Fannie Mae posts stronger Q3 2026 profit as rates rise

Fannie Mae reported stronger Q3 2026 profit as interest rates rise, with net income reaching $4.2 billion and revenue at $7.7 billion. The company's earnings surpassed analyst expectations, despite no formal guidance being provided. The guaranty business remained the main driver of earnings growth, while higher interest rates and weaker housing activity impacted the stock price.

Fannie Mae's shares declined slightly after the earnings release, trading at $3.83, near the lower end of its 52-week range. The company expects lower refinance volumes to continue and warned that challenges in the multifamily market could lead to additional delinquencies. Management emphasized the company's focus on strengthening financial resilience, improving execution, and reducing costs for homebuyers.

Acting CEO Peter Akwaboah highlighted Fannie Mae's role in making housing more accessible and affordable, as well as the $344 billion in liquidity provided to the mortgage market this year. CFO Chryssa C. Halley noted that higher interest rates have significantly impacted the business, reducing acquisition volumes but also slowing prepayments.