Fannie Mae Q3 2026: Net Income $4.2B, Credit Provision Triples to $1.1B

summarizeSummary

Fannie Mae earned $4.2 billion in Q3 2026, but its credit loss provision tripled to $1.1 billion and the company still carries a $205 billion capital shortfall plus a persistent material weakness in disclosure controls.

check_boxKey Events · Earnings and Guidance · FNMA

• Q3 Net Income Rises to $4.2 Billion

  Net income was $4.177 billion versus $3.859 billion a year earlier, and $11.879 billion for the first nine months versus $10.837 billion, driven by a $344 million increase in net revenues and $617 million more in fair value gains.

• Credit Provision Triples to $1.1 Billion

  The provision for credit losses was $1.140 billion in Q3 2026 versus $338 million a year earlier, including a $446 million multifamily provision versus $69 million, on weaker property values and lower debt service coverage.

• Net Worth $119.6 Billion, Capital Gap Persists

  Net worth rose $10.6 billion in the first nine months to $119.6 billion, but the company still reports a $205 billion shortfall to its risk-based adjusted total capital requirement including buffers and a $173 billion CET1 shortfall.

• Material Weakness in Disclosure Controls

  Management concluded disclosure controls and procedures were not effective as of September 30, 2026, and said the material weakness tied to FHFA's dual conservator/regulator role is not expected to be remediated while conservatorship continues.

auto_awesomeAnalysis · FNMA · Finance

Fannie Mae earned $4.177 billion in Q3 2026, $318 million more than a year earlier, but the quality of that earnings beat is weaker than the headline: the provision for credit losses tripled to $1.140 billion from $338 million, with multifamily provisioning alone jumping to $446 million from $69 million on weaker property values and lower debt service coverage. Net worth climbed $10.6 billion in the first nine months to $119.6 billion, yet the company still reports a $205 billion shortfall to its risk-based adjusted total capital requirement including buffers, and the $120.8 billion senior preferred stock does not count as regulatory capital. The filing also restates that disclosure controls were not effective and that a material weakness persists for as long as conservatorship lasts, and it confirms the D.C. Circuit denied the en banc rehearing petition on October 16, 2026, leaving roughly $499 million of damages and prejudgment interest outstanding with a Supreme Court petition window open for 90 days. For common holders the practical read-through is that earnings accrue to the liquidation preference — which rises to $241.1 billion at year-end — not to the equity, and the October 22 executive order adds new mandates whose cost is not yet quantified.