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The US could give homeowners a $980 billion stimulus at no additional cost, 'Oracle of Wall Street' sayshttps://t.co/HKMvrIWiWI
— Cmdr Ron Luhmann (@usnavycmdr) May 7, 2024
$3 trillion could be injected into the U.S. economy without any federal spending by tweaking this corner of the mortgage market, ‘Oracle of Wall Street’ sayshttps://t.co/euIxSOLCH6
— Cmdr Ron Luhmann (@usnavycmdr) May 6, 2024
The FNMA/FMCC shareholders time is coming in the near future. The years and years of waiting for Fannie and Freddie (FNMA/FMCC) stocks (FMCC $0.897 Billion in Market Capitalization) to be worth the value of their company business revenue ($50 Billion) will soon be reality to most FNMA/FMCC shareholders. Here is Paul Mampilly's video explaining why we stand to see a very bullish (up) stock price movement from here:
Watch, Learn, and Enjoy if you are a FNMA/FMCC shareholder:
$Entire $SA article : $Fannie $Mae The Mortgage Insurer: $Long-Term $Trends
May 06, 2024 11:30 AM ET by - Gary J. Gordon
..... Summary .....
--- The Federal National Mortgage Association aka Fannie Mae's primary revenue comes from insuring the risk of owner default on single-family and multifamily homes.
--- Fannie reinsures a lot of its credit risk with private mortgage insurers, other insurers and bond investors.
--- Low current losses are due to conservative underwriting, a healthy housing market, low unemployment and low mortgage debt payments.
--- I expect only modest credit cost increases over the next 5 years.
--- Investors valuing Fannie should assume stable to modestly increasing earnings from the current $17 billion annual base.
I start with a warning label that I will not present a view on a privatization of Federal National Mortgage Association aka Fannie Mae (FNM). I do not have any information of interest on this topic. And I learned over my stock analyst career that guessing on political and legal outcomes is generally a fool’s game.
Rather, for those of you still reading this article, I will discuss how Fannie Mae’s mortgage insurance business works and a longer-term outlook for its earnings.
Fannie Mae is a mortgage insurance company
Fannie’s primary revenue driver is fee income earned by insuring the risk of owner default on single-family homes, and to a far lesser extent, apartment buildings. The beneficiaries of Fannie’s insurance coverage are investors in its mortgage-backed securities (MBS); MBS investors therefore bear no credit risk. Fannie at present insures $3.6 trillion of home mortgage loans and $0.5 trillion of multifamily mortgage loans.
Fannie’s secondary business is owning mortgage assets and short-term securities. At present, it owns $76 billion of mortgage loans and $124 billion of short-term investments. The revenue here is interest income, for which Fannie manages the risk of changing interest rates.
This wasn’t always the business mix for Fannie. While at present loans owned are 2% of loans insured, in 2007 that ratio was 27%. Back then, interest income was far greater than insurance income. But the government mandated that Fannie Mae and Freddie Mac sharply shrink their mortgage investments over time. It looks like the current level is now acceptable to Washington.
So, this is what a summary of Fannie Mae’s income statement looks like today:
Q1 '24 earnings summary ...
Fannie Mae Q1 '24 press release, my summary
Source: Q1 ’24 press release, my summary.
Fannie Mae’s role as a primary mortgage insurer
Fannie Mae is a “primary” mortgage insurer. That means it absorbs all losses on mortgage loans that default in an MBS and that were underwritten to its lending standards. Fannie’s underwriting rules cover credit scores, loan-to-value ratios, appraisals, documentation of borrower income and assets, etc. Mortgage lenders who want Fannie insurance have to guarantee that these underwriting standards have been met. If Fannie discovers after a default or other review that in fact the underwriting was incorrect, the lender has to buy the loan back and absorb the losses itself. That guarantee saved Fannie literally tens of billion dollars following the ’07-’12 housing crisis.
Primary insurance competitors
There are four primary mortgage insurers:
Fannie Mae
Freddie Mac (OTCQB:FMCC), which operates identically to Fannie
Ginnie Mae, which insures FHA and VA government loans and is itself a federal government agency.
Banks/“private label” MBS.
Banks and private label investors can’t profitably compete directly with Fannie, Freddie, and Ginnie because they benefit from being government-sponsored enterprises (GSEs). Rather, the bank/private label group insures loans that the GSEs can’t or won’t insure. The GSEs can’t insure home mortgages above $766,550 in 2024 (higher in some states); these are called “jumbo” loans. And the GSEs won’t insure loans they consider too risky; these are called “nonprime” or “subprime” loans.
Here are the current market shares of newly originated mortgages among the four competitors, as reported by Fannie Mae:
Current primary mortgage insurance market share
Fannie Mae Q1 '24 earnings presentation
Fannie Mae’s secondary insurance protection
Fannie Mae transfers some of its credit risk on its single-family mortgages to three other types of entities:
1. Private mortgage insurers (PMI). Fannie Mae’s charter requires it to get insurance coverage on any loan with less than a 20% down payment. It does so by requiring the borrower to buy PMI, which generally covers 25% of the loan amount. As of the end of Q1, 21% of Fannie’s mortgages had PMI.
2. Other insurance companies provide some insurance coverage on 9% of Fannie’s mortgages.
3. Investors buy securities that share some of the credit risk on 20% of Fannie’s mortgages.
Fannie doesn’t clearly state the loss reduction it receives from secondary insurance each period, but the clues it leaves show the income can be significant. For example,
“The amount by which our estimated benefit from mortgage insurance reduced our total loss reserves was…$4.1 billion as of December 31, 2014” (2015 annual report, page 137).
Long-term earnings issues
OK, we now have an idea of what Fannie Mae does for a living. And the income statement summary above says that Fannie earned $17 billion annualized recently. What should the general direction of earnings look like over the next, say, five years? To address that question, here are the issues I deem the most critical:
The growth rate of Fannie Mae’s MBS
Fannie’s underwriting standards
The health of the housing market
The health of the country’s home mortgage borrowers
Fannie Mae’s summary credit loss outlook.
The growth rate of Fannie Mae’s MBS
Over the last 10 years, Fannie Mae grew its MBS outstanding by 4% a year. To put that number in perspective, let’s look at the key drivers of home mortgage debt: ((A)) household income, which drives the affordability of debt growth, and ((B)) changes in Fannie market share.
Household income growth. Over the past 10 years, U.S. household income grew by 5% annualized. That was 1.5 percentage points faster than home mortgage debt growth of 3%. Forecasting household income is tricky because there are many drivers. But I’ll throw out a 4% forecast to get things rolling.
Market share. Home mortgage debt outstanding grew by 3% a year over the past decade, so Fannie took some market share. But a history of Fannie’s market share shows that it grew from ’14 to ’21, but decreased a bit since then. I believe the reason for the recent decline is that housing affordability declined due to high home prices and the rise in mortgage interest rates. Homebuyers therefore had to move to riskier loan products to qualify for a mortgage, and Fannie has maintained tight lending standards, as you shall see. Going forward, I assume flat to slightly declining market share for Fannie over the next 5 years.
Looking forward, I guess that Fannie’s MBS growth rate will average 2-3% a year over the next 5 years. Not exactly a growth business.
Fannie’s underwriting standards
This chart neatly summarizes Fannie Mae’s underwriting standards. It shows the history of a mortgage underwriting risk index:
Fannie Mae and total mortgage industry underwriting quality index
The Urban Institute
Source: The Urban Institute.
The chart tells us that Fannie’s underwriting standards are:
Consistently tighter than average.
Much tighter than they were during the ’02-’07 housing bubble. Two quick examples. First, subprime loans were 23% of Fannie’s new business in ’06. They are 0% today. And the average FICO score rose from 716 in ’06 to 753 in ’23.
Looking forward, my base case is continued conservative lending standards for Fannie. But the political risk exists of efforts to loosen Fannie and Freddie’s standards to help homebuyers qualify more easily for mortgages.
The health of the housing market
For those of you who have read my articles on PMIs (the most recent is here), the following picture looks familiar. The health of the housing market can be summarized by its vacancy rate – the more vacancies, the riskier, and vice versa. Let’s look:
Housing supply/demand history
The Census Bureau
Source: The Census Bureau.
The U.S. clearly has a housing shortage. This excess of demand over supply keeps home prices up, even with higher mortgage rates, as the last year has taught us.
Looking forward, I expect the shortage of housing to persist, primarily because of new construction limitations and continued immigration. I therefore see a material decline in home prices as a small possibility.
The health of the country’s home mortgage borrowers
Can America’s homeowners keep paying their mortgages? The two primary variables important to that question are the unemployment rate and the “mortgage debt burden” (mortgage payments as a percent of household income). Two charts summarize those variables. First, a history of the unemployment rate:
Unemployment rate history
St. Louis Federal Reserve
Source: FRED.
The current 3.9% unemployment rate is one of the lowest since WWll.
A mortgage debt burden history is here:
Mortgage payments as a percent of household income
St. Louis Federal Reserve
Source: FRED.
Again, at all-time lows.
Looking forward, both the unemployment rate and the mortgage debt burden are likely to trend up. But slowly. The unemployment rate is supported by still-strong employer demand (check out the “JOLT” survey on FRED), while those 3% mortgage originated during ’20 and ’21 will stay on the books for a long time. If so, relatively few mortgage borrowers are likely to default.
Fannie Mae’s summary credit loss outlook
Here is a history of Fannie Mae’s loan charge-offs:
Loan chargeoff history
Fannie Mae 10-K's
Sources: Fannie Mae 10-Ks.
You can see that Fannie’s losses are now minor because of the factors we reviewed above:
Good lending standards
A healthy housing market
Healthy home mortgage borrowers.
Looking forward, my summary of those factors is positive, only a little less than they have been. So loan loss expenses should remain low.
Wrapping up
Fannie Mae’s earnings 5 years from now shouldn't look much different from the $17 billion annualized pace of Q1. The MBS portfolio should be 10-15% larger, but loan losses will be somewhat higher. Whatever your outlook for Fannie Mae’s political status is, I’d factor roughly flat and relatively stable earnings into your valuation.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
Booom ! - Seeking Alpha: Fannie Mae The Mortgage Insurer: Long-Term Trends
May 06, 2024 11:30 AM ET Gary J. Gordon
https://seekingalpha.com/article/4689792-fannie-mae-mortgage-insurer-long-term-trends?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Aall_analysis%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1
Summary
--- The Federal National Mortgage Association aka Fannie Mae's primary revenue comes from insuring the risk of owner default on single-family and multifamily homes.
--- Fannie reinsures a lot of its credit risk with private mortgage insurers, other insurers and bond investors.
--- Low current losses are due to conservative underwriting, a healthy housing market, low unemployment and low mortgage debt payments.
I expect only modest credit cost increases over the next 5 years.
--- Investors valuing Fannie should assume stable to modestly increasing earnings from the current $17 billion annual base.
I start with a warning label that I will not present a view on a privatization of Federal National Mortgage Association aka Fannie Mae (FNM). I do not have any information of interest on this topic.
$FNMA $FMCC thoughts. Something is going to happen because of the new politics around mortgage rates. Mortgage rates bottomed out in August 2021 with the 30 yr mortgage at a bit under 3%. Low rates surged real estate prices and home buying.
— 🇺🇸Paul Mampilly (@MampillyGuru) May 3, 2024
Rates are now at 7.5% & the market… pic.twitter.com/4ABw7p0aFB
Paul Mampilly ....
For example, $FNMA $FMCC pre conservatorship was the natural buyer of last resort of MBS in place of the Fed. But they can no longer do this by law. Also, they can't borrow the money they need to replace the Fed. That's also prohibited by law. And they'll definitely need to borrow to do this. Or hire the skill sets to restart this activity.
In many ways things are almost exactly to where they were in 2008. $FNMA $FMCC are in rude health. Their credit is pristine. A clean release from conservatorship will draw debt, stock investors into buy in to these "new" versions of $FNMA $FMCC.
Right now things sit at an impasse in Washington DC where the decision has to be made to do this. The recent price action in $FNMA $FMCC suggests something is happening at government levels to unknot this tangle. What could it be?
Markets seem to be speculating that after 15+ years of conservatorship, the end of it maybe near. If that is right, $FNMA $FMCC have to be some of the best speculation opportunities for spectacular, rapid gains in sudden, shocking and surprising fashion.
We've owned, tracked, monitored $FNMA $FMCC and several of their preferred stocks in the Gold tier @atgdigital_ model portfolios since 2018. These investments are starting to show modest gains now, but in success mode, these could be 📈🚀🚀❗️
Time will tell. Not financial investment advice. Just my opinion take on things.
$FNMA $FMCC thoughts. Something is going to happen because of the new politics around mortgage rates. Mortgage rates bottomed out in August 2021 with the 30 yr mortgage at a bit under 3%. Low rates surged real estate prices and home buying.
— 🇺🇸Paul Mampilly (@MampillyGuru) May 3, 2024
Rates are now at 7.5% & the market… pic.twitter.com/4ABw7p0aFB
$Booooom ! - $Friday $Morning $Initial $Pop is in $Store ... 
FNMA - Last $1.48 BID X ASK $1.50 X $1.51 - 33,029 premkt
FMCC - Last $1.38 BID X ASK $1.40 X $1.42 ... 20,000 premkt
Otting would have stopped the C-ship. That is why he did not get the job. https://t.co/YQpyXsD8j3
— Robert (@robjunier) May 2, 2024
Freddie Mac Surpasses Analyst Revenue Forecasts w Strong Q1 2024 Performance
GuruFocus Research - Wed, May 1, 2024, 6:01 PM PDT3 min read
Net Income: Reported at $2.8 billion, marking a 39% increase year-over-year, surpassing the estimated $2.3 billion.
Revenue: Achieved $5.8 billion, up 19% year-over-year, exceeding the estimated $4.877 billion.
Provision for Credit Losses: Recorded at $0.2 billion, primarily due to a modest credit reserve build in Single-Family.
New Business Activity: Increased to $62 billion from $59 billion in the prior year's first quarter.
Mortgage Portfolio: Grew to $3.0 trillion, a 2% increase year-over-year.
Delinquency Rate: Improved to 0.52% from 0.62% as of March 31, 2023.
Loan Workouts: Completed approximately 21,000, aiding in the management of delinquencies.
On May 1, 2024, Federal Home Loan Mortgage Corp (FMCC), also known as Freddie Mac, released its 8-K filing, revealing a significant increase in net income and revenue for the first quarter of 2024. The company reported a net income of $2.8 billion, marking a 39% increase from the previous year, and net revenues of $5.8 billion, up 19% year-over-year. These figures substantially exceeded analyst expectations, which had forecasted a net income and revenue of $0.00 million and $4877.00 million respectively.
Freddie Mac Surpasses Analyst Revenue Forecasts with Strong Q1 2024 Performance
Freddie Mac, a cornerstone of the American housing finance system, plays a pivotal role by purchasing, guaranteeing, and securitizing mortgages. It operates primarily through its Single-family and Multifamily segments, with the majority of revenue derived from the Single-family sector. This quarter's performance highlights the company's effective management and operational efficiency, particularly in a challenging economic environment characterized by high interest rates and affordability issues.
Key Financial Highlights
The first quarter saw Freddie Mac's total mortgage portfolio rise to $3.5 trillion, with a notable increase in net interest income to $4.8 billion, up 6% from the previous year. This growth was driven by an expanding mortgage portfolio and higher investments net interest income due to increased short-term interest rates. Non-interest income also surged to $1.0 billion from $0.3 billion in the prior year, primarily due to net investment gains in the Multifamily segment.
The provision for credit losses was $0.2 billion, a slight increase attributed to a modest credit reserve build in the Single-family segment due to new acquisitions and rising mortgage interest rates. Despite these challenges, the company's serious delinquency rate improved, dropping to 0.52% from 0.62% a year earlier, reflecting strong credit performance and effective risk management.
Operational Achievements and Market Impact
During the quarter, Freddie Mac financed 194,000 mortgages and supported 85,000 rental units, with a significant focus on affordability. 54% of the single-family homes and 90% of the rental units financed were affordable to families earning at or below 120% of the area median income. This underscores Freddie Mac's commitment to its mission of making home ownership and rental options accessible to more Americans, particularly low- to moderate-income families.
The company's efforts to enhance liquidity and stability in the housing market are evident in its new business activities, which totaled $62 billion, up from $59 billion in the same quarter the previous year. Additionally, Freddie Mac's strategic use of credit enhancements covered 61% of its mortgage portfolio, further securing its financial footing and protecting against potential losses.
Looking Ahead
As Freddie Mac continues to navigate the complexities of the housing market and broader economic conditions, its strong first-quarter performance provides a solid foundation for future growth. The company remains focused on its mission to stabilize the housing market and provide continued support to homeowners and renters across the United States.
For more detailed information on Freddie Mac's financial results and operational strategies, investors and interested parties are encouraged to review the full earnings report and supplementary materials available on the company's website.
Explore the complete 8-K earnings release (here) from Federal Home Loan Mortgage Corp for further details.
Kangaroo court room very true as long as the crooked regime in charge period. Bottom line the crooked using the BS power try suppress whoever against them. Anti-Semitism word so ridiculous and so outdated people around the world have the right to stand up the dictator regime. So every time any words again Israel call the Anti-Semitism by the stupid media framing for the people stand up their right and their freedom suppress by the lunatic war monger leader Israel. Again the world we live now do have good apple and bad apple get the point hates media so please stop calling people around the world to fight for their free doom and their ancestor land confiscate by Israel regime consider Anti-Semitism very BS and not very true. No one hate Israel people except the war monger leader of Israel cooked regime in charge causing the world wide unstable period.
https://apnews.com/article/trump-wisconsin-michigan-battleground-trial-gag-order-f3d448782edc81e10274cf99175f3844?utm_source=newsshowcase&utm_medium=gnews&utm_campaign=CDAqDwgAKgcICjCE7s4BMOH0KDDHndUC&utm_content=rundown
What is it many people mind and don't get the fact that no matter how much F&F earning it doesn't matter. As long as the crooks regime in charge and F&F in Cship. The SP still in OTC and the mm still easily manipulation with the blessing green light from the the crooks. Only MAGA by DJT reclaim the WH this Nov then F&F will be out of Cship and the crooks regime will get kick out and freedom will be ring on F&F SH at last! The try to shake DJT out everything they could and so far the crooks regime fail miserably. I can only hope this Nov GOP take over the House and Senate and pretty sure DJT in WH then it is pay back time for what the crooks done. Shame on them too many things need here instead of go other country to protecting as the cost by taxpayers and continue liars to the American public. Again, watch the crooks talk then compare what the crooks does.. 95 Billion from taxpayers no issue but for F&F SH won by the judgement until now still fought tooth and nail court here and there under the porky judge know nothing about the law what right and wrong except wearing the BS clown rope. You be the judge.
Another quarter of very solid income and another quarter of shareholders getting zilch! #Fanniegate $FNMA https://t.co/UlUpI1sJWB
— GSE News (@GSE_NewsToday) April 30, 2024
$Booooom ! Freddie Mac Q1 - May 01, 2024
--- Q1 Net revs $5.8 Bil, incr + 19% YOY, driven by higher net int
--- Prov for cred losses $0.2 Bil, by modest credit res in Sngl-Fam attrib
to new acquisitions & mort interest rates.
--- Net inc $2.8 Bil +39% YOY, driven by higher revenues.
$Freddie $Mac reports $Q1 $Results - May 01, 2024 1:51 PM ET
Federal Home Loan Mortgage Corporation (FMCC) StockBy: Gaurav Batavia, SA News Editor
Freddie Mac press release (OTCQB:FMCC):
--- Q1 Net revenues of $5.8 billion, an increase of 19% year-over-year,
driven by higher net interest income and higher non-interest income.
--- Provision for credit losses of $0.2 billion, primarily driven by a modest
credit reserve build in Single-Family attributable to new acquisitions and increasing mortgage interest rates.
--- Net income of $2.8 billion, an increase of 39% year-over-year, primarily driven by higher net revenues.
More on Freddie Mac
May 1, 2024 - Transcript: Freddie Mac CFO Discusses First Quarter 2024 Financial and Business Results
Christian Lown - Executive Vice President and Chief Financial Officer
Remarks of Chris Lown
Introduction
Good morning and thank you for joining our call to review Freddie Mac’s first quarter 2024 financial results. Before I move on to our earnings, I’d like to offer some brief remarks about the mission our financial performance supports.
In the first quarter, Freddie Mac helped make it possible for hundreds of thousands of families to rent, buy or refinance a home. Ninety percent of the rental homes we helped finance were affordable to low- and moderate-income families. First-time homebuyers represented 52 percent of new single-family home purchase loans. That’s a new high for us.
We are working to extend these opportunities to more borrowers and renters in a safe, sound and sustainable way. Here are three examples of how we moved toward that goal since the beginning of the year:
First, we added to our affordability toolkit for very low-income homebuyers. Through our Home Possible Very Low-Income Purchase Credit, eligible families earning 50 percent or less of area median income can now receive a $2,500 credit to help them with closing costs or a down payment.
Second, we made mission-focused investing easier for the firms that supply liquidity to the U.S. housing finance system. Updates to our Mission Index could help investors identify mortgage-backed securities meeting their social investment goals.
And third, we continue to update our risk-management practices. We recently announced Multifamily policy and process changes—including enhanced property inspection requirements and appraisal reviews—that further strengthen our underwriting due diligence and risk mitigation.
Through these actions and others, Freddie Mac is helping to make home possible for families across the country in a safe and sound manner.
Now let’s take a look at our financial results.
Financials
We earned net income of $2.8 billion this quarter, an increase of $771 million, or 39 percent, year-over-year. This increase was primarily driven by higher net investment gains and higher net interest income which benefited from higher rates.
First quarter net interest income was $4.8 billion, up 6 percent year-over-year. The Single-Family mortgage portfolio grew 2 percent and saw a 1 basis point increase in the average estimated Single-Family guarantee fee rate. Higher investment income benefiting from higher short-term interest rates also contributed to the increase in net interest income. These positive drivers were partially offset by lower deferred fee income recognition resulting from slower prepayments due to higher mortgage rates.
Non-interest income for the first quarter was $1 billion, an increase of $672 million from the prior year quarter, primarily due to an increase in net investment gains in Multifamily.
Our provision for credit losses was $181 million for this quarter, driven by modest credit reserve builds in both business segments, compared to a higher provision expense of $395 million for the prior year quarter, which was primarily attributable to new acquisitions in that period.
Our total mortgage portfolio at the end of this quarter was $3.5 trillion, a 2 percent increase year-over-year.
Single-Family Business Segment
Turning to our individual business segments, the Single-Family segment reported net income of $1.9 billion for the quarter, up $268 million, or 16 percent year-over-year.
Single-Family net revenues of $4.5 billion increased 6 percent from the prior year quarter. This increase was primarily driven by a 4 percent increase in our net interest income, which benefited from continued growth in our Single-Family mortgage portfolio. Investment net interest income also increased due to higher short-term interest rates. These increases were partially offset by lower deferred fee income due to slower prepayments as a result of higher mortgage rates.
Our provision for single-family credit losses was an expense of $120 million this quarter, primarily due to a modest credit reserve build for new acquisitions and the impact of higher mortgage rates. The provision in the prior year quarter was $318 million, which was primarily attributable to new acquisitions.
Our current house price forecast assumes an increase of 0.2 percent over the next 12 months and 0.6 percent over the subsequent 12 months. This is down from our forecast at end of last quarter which assumed 2.8 percent and 2 percent growth over next 12 and subsequent 12 months, respectively.
The Single-Family allowance for credit losses coverage ratio at the end of this quarter was 20 basis points, unchanged from the last quarter and down 6 basis points year over year.
The Single-Family serious delinquency rate continued to be historically low and declined to 52 basis points at the end of the first quarter, down 10 basis points from 1Q 2023 and 3 basis points from 4Q 2023. In the first quarter, we helped approximately 21,000 families remain in their homes through loan workouts.
Our Single-Family mortgage portfolio at the end of the quarter was $3.0 trillion, up 2 percent year over year. Credit characteristics of our Single-Family portfolio remained strong, with the weighted average current loan-to-value ratio at 52 percent and the weighted average current credit score at 754. At the end of the quarter, 61 percent of our single-family portfolio had some form of credit enhancement.
New business activity totaled $62 billion this quarter, slightly up from $59 billion from 1Q 2023. First time home buyers represented 52 percent of our total new business activity.
Higher mortgage rates continue to impact both purchase and refinance activity. Refinance activity accounted for 15 percent of our total new business activity this quarter which was slightly up from 11 percent in 4Q 2023. Mortgage rates at the end of the quarter were 6.79 percent, up from 6.61 percent at end 4Q 2023 and 6.32 percent at end 1Q 2023.
The weighted average original loan-to-value on new purchases was 78 percent and weighted average original credit score was 753, while the average estimated guarantee fee charged on the new business was 55 basis points.
Multifamily Business Segment
Moving on to Multifamily, the segment reported net income of $821 million, up $503 million from the prior year quarter. This increase was primarily driven by higher non-interest income of $1 billion, which increased $593 million from the prior year quarter. This increase in non-interest income was primarily driven by net gains from interest-rate risk management activities, higher revenues from held-for-sale loan purchase and securitization activities, and favorable fair value changes from spreads.
Net interest income of $271 million was up 32 percent year-over-year, primarily driven by higher yields on mortgage loans as a result of higher interest rates and the larger average PC portfolio.
The Multifamily provision for credit losses was an expense of $61 million this quarter versus $77 million in the prior year quarter.
Our Multifamily new business activity was $9 billion for the first quarter, up $3 billion or 50 percent from a year ago. Our Multifamily business provided financing for 85,000 multifamily rental units this quarter, of which 61 percent were affordable to low-income families.
The Multifamily mortgage portfolio increased 4 percent year-over-year to $443 billion. Approximately 94 percent of the Multifamily mortgage portfolio was covered by credit enhancements at the end of this quarter.
The Multifamily delinquency rate at end of the quarter was 34 basis points, up 21 basis points versus 13 basis points at the end of March 2023. This increase was primarily driven by delinquency in our floating rate loans and small business loans portfolio. Ninety-four percent of these delinquent loans had credit enhancement coverage.
Capital
On the capital front, our net worth increased to $50.5 billion at the end of the quarter, representing a 29 percent increase year-over-year.
Conclusion
In conclusion, Freddie Mac helped 279,000 families purchase, refinance, or rent a home while delivering solid financial results this quarter. Importantly, most of the liquidity we provided supported low- and moderate-income households, as well as first-time homebuyers. As affordability challenges are expected to persist, efforts to expand affordability for homeowners and renters will remain a key focus of Freddie Mac.
$Freddie $Mac $Net $Revs $5.8 Bil Net $Income $2.8 Bil
$2.8 Bil / 650 Mil shares = $4.30 / share
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