Federal National Mortgage Association (Fannie Mae) — Cyborg Score 6/10
Solid
Mortgage Finance / Secondary Mortgage Market
Strategic Profile
Fannie Mae maintained a significant market share, guaranteeing approximately 24% of total U.S. residential mortgage debt outstanding as of September 30, 2025. The organization has achieved its 14th consecutive year of annual profitability. Investment in FNMA stock represents a long-term wager on regulatory change, legal outcomes, and political will rather than traditional housing growth or mortgage demand metrics.
Cyborg Score Rationale
Fannie Mae's net worth has expanded to $109 billion, indicating strong financial momentum. The company boasts a net margin of 49.72%, indicating strong profitability relative to its revenue. However, the company's debt-to-equity ratio stands at 39.85 and its Z-Score of 0 indicates potential financial distress concerns.
Top Insights
Net income decreased $2.614 billion compared to 2024, driven by lower fair value gains and higher provision for credit losses
Multifamily serious delinquencies rose 6 basis points in Q4, with management warning of potential further multifamily stress in 2026
Management pursued cost and capital actions—about 1,200 workforce reductions and lower non-interest expenses
Since the government takeover, nearly all of the company's profits have been swept into the U.S. Treasury, and common shareholders do not receive dividends
Named Competitors
Freddie Mac — Government-sponsored mortgage guarantor and secondary market operator
(February 2026) Filed annual 10-K report providing comprehensive overview of financial performance and strategic positioning
(February 2026) Reported fourth-quarter net income of $3.5 billion and full-year 2025 net income of $14.4 billion, ending the year with $109 billion in net worth
(2026) Announced 2026 multifamily loan purchase cap of $88 billion
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