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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 70 November 2025 J O U R N A L capacity. The confirmation of Cassidy and Gormley will likely determine near-term stability at two major federal housing-fi- nance agencies and shape HUD's ability to carry out its programs. FANNIE MAE'S PROFITS CLIMB, FREDDIE MAC'S FALL IN DIVERGENT Q3 RESULTS F annie Mae and Freddie Mac had diverging results for the third quarter, the GSEs reported. Fannie Mae earned $3.9 billion for the third quarter of 2025, compared with $3.3 billion for the second quarter of 2025. Net revenues remained stable; the increase in net income from the previous quarter was driven primarily by reductions in the provision for credit losses and non-inter- est expense, partially offset by lower fair value gains. The company's net worth increased to $105.5 billion as of Septem- ber 30. Freddie Mac reported net income of $2.8 billion for the third quarter of 2025, down 11% from the third quarter of 2024, primarily driven by a credit reserve build in the current period compared to a credit reserve release in the prior year period. Net revenues were $5.7 billion for the third quarter, down 2% year over year, primarily driven by lower non-interest income, partially offset by higher net in- terest income. Net interest income for the third quarter was $5.5 billion, up 9% year over year, primarily driven by continued mortgage portfolio growth and lower funding costs, partially offset by lower yields on short-term investments. Non-interest income was $0.3 billion, down 66% year over year, primarily driven by Single-Family Provision for credit losses, which was $0.2 billion for the third quarter of 2025, primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The benefit for credit losses of $0.2 billion for the third quarter of 2024 was driven by a credit reserve release in Single-Family as a result of lower mortgage interest rates and a credit reserve release in Multifamily due to enhancements in the credit estima- tion process. "Fannie Mae is operating with greater business focus than ever. Trimming $173 million in administrative expenses since the first quarter of 2025, we have grown our net worth to over $105 billion," said William J. Pulte, Fannie Mae Chairman, in a prepared statement. "Fannie Mae's strong leadership team continues to perform at a high level, with earnings up $542 million from the second quarter to $3.9 billion this quarter while reliably meeting the housing needs of borrowers and renters across the United States." The outlook for Fannie Mae is prom- ising, according to Timothy D'Agostino, equity research analyst for B. Riley Se- curities. "We forecast EPS, before senior preferred adjustments, of $2.50, $2.70, and $2.85 for 2025, 2026, and 2027, respectively. The key drivers to our forecast include portfolio growth of –0.8%, 3.5%, and 3.8% in 2025, 2026, and 2027, respectively, and delinquency rates remaining stable at about 0.5% in 2025, 2026, and 2027." Fred- die Mac cited the following highlights: • New business activity increased year over year, primarily driven by a larger multifamily originations mar- ket, coupled with the execution of Multifamily's competitive strategies. Sixty-seven percent of the eligible multifamily rental units financed in the third quarter of 2025 were afford- able to low-income families. • The Multifamily delinquency rate increased to 0.51% on September 30, 2025, from 0.39% on September 30, 2024, primarily driven by an increase in delinquent floating rate loans and small balance loans. FEDERAL COURT HALTS CFPB'S OPEN BANKING RULE AMID DATA SECURITY CONCERNS T he U.S. District Court for the Eastern District of Kentucky issued an injunction halting the implementation of the Consumer Protec- "Fannie Mae is operating with greater business focus than ever. Trimming $173 million in administrative expenses since the first quarter of 2025, we have grown our net worth to over $105 billion." —William J. Pulte, Chairman, Fannie Mae