Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

They are booking more credit loss reserves:

"Net income decreased $9.3 billion in 2022 compared with 2021, primarily driven
by a $11.4 billion shift to provision for credit losses and a $1.6 billion shift to
investment losses, partially offset by a $1.1 billion increase in fair value gains."

"Provision for credit losses was $6.3 billion in 2022, compared with a benefit for credit losses of $5.1 billion in
2021.
• Single-family provision in 2022 was primarily driven by decreases in forecasted home prices, the overall
credit risk profile of the company’s newly acquired loans, and rising interest rates.
• Multifamily provision in 2022 was primarily driven by an increase in expected credit losses on the
company’s seniors housing portfolio, which has been disproportionately impacted by recent market
conditions, as well as higher actual and projected interest rates."

"Average single-family conventional guaranty book of business in 2022 increased from 2021 by 7% driven
primarily by growth in the average balance of loans acquired during the year. Overall credit characteristics of the
single-family conventional guaranty book of business remained strong, with a weighted-average mark-to-market
loan-to-value ratio of 52% and a weighted-average FICO credit score at origination of 752 as of December 31,
2022."