OTCMKTS:FNMA Federal National Mortgage Association Q1 2024 Earnings Report $6.33 +0.03 (+0.48%) As of 05/2/2025 03:59 PM Eastern Earnings HistoryForecast Federal National Mortgage Association EPS ResultsActual EPS$0.60Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AFederal National Mortgage Association Revenue ResultsActual Revenue$37.37 billionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AFederal National Mortgage Association Announcement DetailsQuarterQ1 2024Date4/30/2024TimeQ1 2024 Earnings CallConference Call DateTuesday, April 30, 2024Conference Call Time8:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)SEC FilingEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Federal National Mortgage Association Q1 2024 Earnings Call TranscriptProvided by QuartrApril 30, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good day, and welcome to the Fannie Mae First Quarter 2024 Financial Results Conference Call. At this time, I will now turn it over to your host, Pete Bekell, Fannie Mae's Director of External Communications. Speaker 100:00:13Hello, and thank you all for joining today's conference call to discuss Fannie Mae's Q1 2024 financial results. Please note this call includes forward looking statements, including statements about Fannie Mae's expectations related to economic and housing market conditions, the future performance of the company's book of business and the company's business plans and their impact. Future events may turn out to be very different from these statements. The forward looking statements sections in the company's Q1 2024 Form 10 Q filed today and in the Risk Factors and Forward Looking Statements sections in the company's 2023 Form 10 ks filed on February 15, 2024 describe factors that may lead to different results. A recording of this call may be posted on the company's website. Speaker 100:01:00We ask that you do not record this call for public broadcast and that you do not publish any full transcript. I'd now like to turn the call over to Fannie Mae Chief Executive Officer, Priscilla Amodovar and Fannie Mae Chief Financial Officer, Priscilla C. Hally. Speaker 200:01:16Welcome and thank you for joining us today. I'll begin this morning by spending a few minutes on the economic environment and then we'll turn it to our financial and mission performance for the Q1 of 2024. After that, our Chief Financial Officer, Chrissa Haley will discuss our Q1 results in more detail. The U. S. Speaker 200:01:37Economy in the Q1 continued to grow, but at a slower pace. 1st quarter GDP was 1.6%. Inflation remained persistent at 3.2%, still above the Federal Reserve's 2% target. The 30 year fixed rate mortgage rate averaged 6.7% during the quarter compared to 7.3% in the Q4 of 2023. Home supply continued to be constrained and as a result home prices remained strong. Speaker 200:02:11We estimate that home prices rose 1.7% during the quarter. Current interest rates combined with high home prices continued to put pressure on housing affordability. Despite these pressures, consumers seem to be adjusting their expectations on mortgage rates and the home price environment. According to our recent home purchase sentiment index, consumers are slightly more optimistic about both home buying and home selling conditions. For lenders, overall market single family mortgage origination activity continued to be sluggish at an estimated $330,000,000,000 for the quarter and relatively flat compared to the prior quarter. Speaker 200:03:00In multifamily, the market saw property values continue to decline. Nationally, there was slight rent growth of an estimated 25 basis points in the Q1 after rent declines in the prior one. Despite the softening in rents, affordability continues to remain a challenge for renters in many parts of the country. Turning to our Q1 financial results. We reported $4,300,000,000 in net income compared to $3,900,000,000 in Q4. Speaker 200:03:36As a result, through our retained earnings, we continued to build our net worth, which increased to $82,000,000,000 as of the end of March. This further bolsters our financial stability, which enables us to continue to deliver on our mission. To that end, we provided $72,000,000,000 of liquidity to the single family and multifamily markets in the Q1. In doing so, we helped 280,000 households buy, refinance or rent a home. This included approximately 89,000 units of multifamily rental housing, a significant majority of which were affordable to households earning at or below 120% of area median income. Speaker 200:04:26We also helped 76,000 first time homebuyers to purchase a home. These numbers demonstrate our commitment to serving the housing market. We are focused on shaping a market that works better for everyone. This includes our continued work to alleviate obstacles that many renters and homebuyers face in their home purchase journey, specifically insufficient credit and high upfront costs. For example, this past quarter, we announced a temporary enhancement to HomeReady, our flagship 3% down 30 year mortgage product to include $2,500 to use towards down payment or closing costs for purchase borrowers who make no more than 50% of area median income. Speaker 200:05:19We also expanded our Home Ready 1st special purpose credits program to an additional 15 markets for a total of 21 markets. This program offers flexibility such as down payment assistance, expanded income level eligibility and reduced closing costs for borrowers residing in these markets. And just yesterday, we published a new 1st generation homebuyer definition for use by the housing industry. Disparities in homeownership and wealth among families are strongly correlated to homeownership from prior generations. We hope that developing the standard definition allows the industry to understand and explore new ways of addressing these disparities and to scale programs to support these homebuyers. Speaker 200:06:14We are also creatively using our role in the capital markets to support our mission. This past quarter, we launched our enhanced single family mission index disclosures, which help interested mortgage backed security investors allocate their capital in support of affordable housing and underserved borrowers and markets. These disclosures are the foundation of our single family social bonds, which are designed to attract additional capital to U. S. Housing. Speaker 200:06:48To play our important role of providing liquidity and stability to the U. S. Housing system, we are laser focused on risk management. In fact, our ability to deliver on our mission depends on it. You'll see this through our sound underwriting standards and the ways we are responsibly helping the housing market see and serve more people. Speaker 200:07:11You'll also see this through our servicing standards and support we provide to homeowners and renters in distress. These efforts not only help the consumers that the housing market serves, but they make our business and the market more resilient. Thanks to our dedicated teams, for continuing to deliver on our mission to facilitate equitable and sustainable access to homeownership and quality affordable rental housing across America. Now I'll turn it over to Christa to discuss our Q1 financial results. Speaker 300:07:50Thank you, Priscilla, and good morning. As Priscilla mentioned, we reported 4 point $3,000,000,000 in net income in the Q1, a $377,000,000 increase compared to the Q4 of last year. Our first quarter revenues remained strong with $7,000,000,000 of net interest income, thanks to healthy guarantee fees. We saw a benefit for credit losses this quarter of $180,000,000 as opposed to a provision of $116,000,000 we recorded the prior quarter. This was driven by a release in reserves due to increases in forecasted single family home prices, partially offset by an increase in reserves for multifamily. Speaker 300:08:38The multifamily increase is due primarily to declining actual and near term projected property values as well as increases in actual and projected interest rates compared to the company's prior forecast. Increases in interest rates drove around $480,000,000 in fair value gains compared to approximately $100,000,000 in fair value losses recognized in the previous quarter. In our single family business, we acquired $62,000,000,000 in loan this quarter compared to $70,000,000,000 in the Q4 of last year. This is the lowest quarterly acquisition volume we have seen since the Q3 of 2000. Continued high interest rates, housing affordability constraints and limited supply Our overall single family book of business remains strong with a weighted average mark to market loan to value ratio of 51% and a weighted average credit score at origination of 753. Speaker 300:09:56Current economic conditions, including low unemployment, our underwriting standards and effective loan workout options for distressed borrowers resulted in our single family serious delinquency rate remaining near historically low levels as of March 31 at 51 basis points. A slowing economy may impact the credit performance of loans in our single family guarantee book of business, which could lead to an increase in our single family serious delinquency rate. In the Q1 of this year, we executed 5 single family credit risk transfer transactions between our Connecticut Avenue Securities and Credit Insurance Risk Transfer Programs. With these transactions, we transferred a portion of the credit risk on approximately $69,000,000,000 of unpaid principal balance at the time of the transactions. We paid $380,000,000 in premiums during the quarter on our outstanding single family credit risk transfer transactions. Speaker 300:11:05Turning to our multifamily business, we acquired approximately $10,000,000,000 in multifamily loans this quarter compared to approximately $11,000,000,000 last quarter. This was similar to the Q1 of last year and is the lowest quarterly acquisition volume we have seen since the Q4 of 2015. Our multifamily book had a weighted average original loan to value ratio of 63% and a weighted average debt service coverage ratio of 2 times. During the last several quarters, higher interest rates and investor yield requirements have reduced multifamily property sales transactions and placed downward on multifamily property valuations. According to data from the MSCI Real Assets Commercial Property Price Index, multifamily property values declined 19% from the peak in July 2022 to March 2024 and are now back to the levels seen in 2021. Speaker 300:12:13We continue to monitor the impacts of elevated interest rates on our multifamily book. Higher rates may reduce the ability of multifamily borrowers to refinance their loans prior to maturity when they typically have a balloon payment due. While our near term maturities remain low, market maturities are expected to be elevated, which could put additional pressure on the multifamily market. Roughly 1.6% of our multifamily book is expected to mature in 2024 and approximately 3.5% is expected to mature in 2025. Our multifamily serious delinquency rate decreased slightly to 44 basis points as of March 31, 2024 from 46 basis points as of December 31, 2023. Speaker 300:13:10In addition to DUS, our primary multifamily risk sharing model, we completed 1 multifamily credit risk transfer in the Q1 through our multifamily CERT program. This transferred a portion of the credit risk on $11,500,000,000 of unpaid principal balance at the time of the transactions. Lastly, I'll touch on our current economic outlook. There is a significant amount of uncertainty related to the Federal Reserve's next steps on interest rates. While our economists currently expect 2 rate cuts from the Fed later this year, further persistence in inflation poses the possibility of 0 cuts in 2024. Speaker 300:13:56Home prices continue to be strong and our current forecast is that home prices will rise 4.8% in 2024, up 1.6 percentage points from last quarter's projection. We believe affordability challenges, the lock in effect and a low inventory of homes available for sale will likely persist this year. We expect single family mortgage originations to grow from $1,500,000,000,000 in 2023 to approximately $1,800,000,000,000 in 2024. Purchases are likely to continue to dominate the market given the rate environment and we estimate they will make up over 75% of single family mortgage originations this year. 2024 multifamily market origination volumes are estimated to be between 300 dollars to $340,000,000,000 up from an estimated $265,000,000,000 in volume for 2023, but down from $480,000,000,000 in 2022. Speaker 300:15:06We believe that with continued high interest rates, elevated new supply completions and higher than average vacancy rates, multifamily sales activity will remain subdued in the near term, which could result in additional declines in multifamily property values over the short term. Over the longer term, however, we expect sales and valuations will improve due to expected improvements in multifamily housing market fundamentals stemming from positive demographic trends and ongoing job growth. We expect rent growth to remain below historical averages in the 1% to 1.5% range in 2024 as a result of elevated new construction completions and many renters dealing with higher levels of consumer debt. Our expectations are based on many assumptions and our actual results could differ materially from our current expectations. I invite you to visit fanniemae.com where you'll find a financial supplement with today's filing that provides additional insights into our business. Speaker 300:16:17Thank you so much for joining us today. Operator00:16:20Thank you, everyone. That concludes today's call. You may disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallFederal National Mortgage Association Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Federal National Mortgage Association Earnings HeadlinesGreenwich school board member appointed as part of a Trump administration shake-up of Freddie MacMay 1 at 9:55 AM | msn.comQ1 2025 Federal National Mortgage Association Earnings CallMay 1 at 4:53 AM | finance.yahoo.comTrump wipes out trillions overnight…Is there anybody more powerful than Donald Trump right now? In a single tariff announcement, he wiped out nearly $5 trillion in wealth from the S&P 500 and $6.4 trillion from the Dow Jones… Not to mention the countless trillions of dollars lost in every market around the world… leaving the major political powers scrambling in fear of Trump’s next move.May 4, 2025 | Porter & Company (Ad)Decoding Federal National Mortgage Association Fannie Mae (FNMA): A Strategic SWOT InsightMay 1 at 3:15 AM | gurufocus.comFannie Mae 1Q Income Declines, Revenue FlatApril 30, 2025 | marketwatch.comFannie Mae Reports Net Income of $3.7 Billion for First Quarter 2025April 30, 2025 | prnewswire.comSee More Federal National Mortgage Association Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Federal National Mortgage Association? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Federal National Mortgage Association and other key companies, straight to your email. Email Address About Federal National Mortgage AssociationFederal National Mortgage Association (OTCMKTS:FNMA) provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.View Federal National Mortgage Association ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback PlanMicrosoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of Earnings Upcoming Earnings Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)Realty Income (5/5/2025)Williams Companies (5/5/2025)CRH (5/5/2025)Advanced Micro Devices (5/6/2025)American Electric Power (5/6/2025)Constellation Energy (5/6/2025)Marriott International (5/6/2025)Energy Transfer (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 4 speakers on the call. Operator00:00:00Good day, and welcome to the Fannie Mae First Quarter 2024 Financial Results Conference Call. At this time, I will now turn it over to your host, Pete Bekell, Fannie Mae's Director of External Communications. Speaker 100:00:13Hello, and thank you all for joining today's conference call to discuss Fannie Mae's Q1 2024 financial results. Please note this call includes forward looking statements, including statements about Fannie Mae's expectations related to economic and housing market conditions, the future performance of the company's book of business and the company's business plans and their impact. Future events may turn out to be very different from these statements. The forward looking statements sections in the company's Q1 2024 Form 10 Q filed today and in the Risk Factors and Forward Looking Statements sections in the company's 2023 Form 10 ks filed on February 15, 2024 describe factors that may lead to different results. A recording of this call may be posted on the company's website. Speaker 100:01:00We ask that you do not record this call for public broadcast and that you do not publish any full transcript. I'd now like to turn the call over to Fannie Mae Chief Executive Officer, Priscilla Amodovar and Fannie Mae Chief Financial Officer, Priscilla C. Hally. Speaker 200:01:16Welcome and thank you for joining us today. I'll begin this morning by spending a few minutes on the economic environment and then we'll turn it to our financial and mission performance for the Q1 of 2024. After that, our Chief Financial Officer, Chrissa Haley will discuss our Q1 results in more detail. The U. S. Speaker 200:01:37Economy in the Q1 continued to grow, but at a slower pace. 1st quarter GDP was 1.6%. Inflation remained persistent at 3.2%, still above the Federal Reserve's 2% target. The 30 year fixed rate mortgage rate averaged 6.7% during the quarter compared to 7.3% in the Q4 of 2023. Home supply continued to be constrained and as a result home prices remained strong. Speaker 200:02:11We estimate that home prices rose 1.7% during the quarter. Current interest rates combined with high home prices continued to put pressure on housing affordability. Despite these pressures, consumers seem to be adjusting their expectations on mortgage rates and the home price environment. According to our recent home purchase sentiment index, consumers are slightly more optimistic about both home buying and home selling conditions. For lenders, overall market single family mortgage origination activity continued to be sluggish at an estimated $330,000,000,000 for the quarter and relatively flat compared to the prior quarter. Speaker 200:03:00In multifamily, the market saw property values continue to decline. Nationally, there was slight rent growth of an estimated 25 basis points in the Q1 after rent declines in the prior one. Despite the softening in rents, affordability continues to remain a challenge for renters in many parts of the country. Turning to our Q1 financial results. We reported $4,300,000,000 in net income compared to $3,900,000,000 in Q4. Speaker 200:03:36As a result, through our retained earnings, we continued to build our net worth, which increased to $82,000,000,000 as of the end of March. This further bolsters our financial stability, which enables us to continue to deliver on our mission. To that end, we provided $72,000,000,000 of liquidity to the single family and multifamily markets in the Q1. In doing so, we helped 280,000 households buy, refinance or rent a home. This included approximately 89,000 units of multifamily rental housing, a significant majority of which were affordable to households earning at or below 120% of area median income. Speaker 200:04:26We also helped 76,000 first time homebuyers to purchase a home. These numbers demonstrate our commitment to serving the housing market. We are focused on shaping a market that works better for everyone. This includes our continued work to alleviate obstacles that many renters and homebuyers face in their home purchase journey, specifically insufficient credit and high upfront costs. For example, this past quarter, we announced a temporary enhancement to HomeReady, our flagship 3% down 30 year mortgage product to include $2,500 to use towards down payment or closing costs for purchase borrowers who make no more than 50% of area median income. Speaker 200:05:19We also expanded our Home Ready 1st special purpose credits program to an additional 15 markets for a total of 21 markets. This program offers flexibility such as down payment assistance, expanded income level eligibility and reduced closing costs for borrowers residing in these markets. And just yesterday, we published a new 1st generation homebuyer definition for use by the housing industry. Disparities in homeownership and wealth among families are strongly correlated to homeownership from prior generations. We hope that developing the standard definition allows the industry to understand and explore new ways of addressing these disparities and to scale programs to support these homebuyers. Speaker 200:06:14We are also creatively using our role in the capital markets to support our mission. This past quarter, we launched our enhanced single family mission index disclosures, which help interested mortgage backed security investors allocate their capital in support of affordable housing and underserved borrowers and markets. These disclosures are the foundation of our single family social bonds, which are designed to attract additional capital to U. S. Housing. Speaker 200:06:48To play our important role of providing liquidity and stability to the U. S. Housing system, we are laser focused on risk management. In fact, our ability to deliver on our mission depends on it. You'll see this through our sound underwriting standards and the ways we are responsibly helping the housing market see and serve more people. Speaker 200:07:11You'll also see this through our servicing standards and support we provide to homeowners and renters in distress. These efforts not only help the consumers that the housing market serves, but they make our business and the market more resilient. Thanks to our dedicated teams, for continuing to deliver on our mission to facilitate equitable and sustainable access to homeownership and quality affordable rental housing across America. Now I'll turn it over to Christa to discuss our Q1 financial results. Speaker 300:07:50Thank you, Priscilla, and good morning. As Priscilla mentioned, we reported 4 point $3,000,000,000 in net income in the Q1, a $377,000,000 increase compared to the Q4 of last year. Our first quarter revenues remained strong with $7,000,000,000 of net interest income, thanks to healthy guarantee fees. We saw a benefit for credit losses this quarter of $180,000,000 as opposed to a provision of $116,000,000 we recorded the prior quarter. This was driven by a release in reserves due to increases in forecasted single family home prices, partially offset by an increase in reserves for multifamily. Speaker 300:08:38The multifamily increase is due primarily to declining actual and near term projected property values as well as increases in actual and projected interest rates compared to the company's prior forecast. Increases in interest rates drove around $480,000,000 in fair value gains compared to approximately $100,000,000 in fair value losses recognized in the previous quarter. In our single family business, we acquired $62,000,000,000 in loan this quarter compared to $70,000,000,000 in the Q4 of last year. This is the lowest quarterly acquisition volume we have seen since the Q3 of 2000. Continued high interest rates, housing affordability constraints and limited supply Our overall single family book of business remains strong with a weighted average mark to market loan to value ratio of 51% and a weighted average credit score at origination of 753. Speaker 300:09:56Current economic conditions, including low unemployment, our underwriting standards and effective loan workout options for distressed borrowers resulted in our single family serious delinquency rate remaining near historically low levels as of March 31 at 51 basis points. A slowing economy may impact the credit performance of loans in our single family guarantee book of business, which could lead to an increase in our single family serious delinquency rate. In the Q1 of this year, we executed 5 single family credit risk transfer transactions between our Connecticut Avenue Securities and Credit Insurance Risk Transfer Programs. With these transactions, we transferred a portion of the credit risk on approximately $69,000,000,000 of unpaid principal balance at the time of the transactions. We paid $380,000,000 in premiums during the quarter on our outstanding single family credit risk transfer transactions. Speaker 300:11:05Turning to our multifamily business, we acquired approximately $10,000,000,000 in multifamily loans this quarter compared to approximately $11,000,000,000 last quarter. This was similar to the Q1 of last year and is the lowest quarterly acquisition volume we have seen since the Q4 of 2015. Our multifamily book had a weighted average original loan to value ratio of 63% and a weighted average debt service coverage ratio of 2 times. During the last several quarters, higher interest rates and investor yield requirements have reduced multifamily property sales transactions and placed downward on multifamily property valuations. According to data from the MSCI Real Assets Commercial Property Price Index, multifamily property values declined 19% from the peak in July 2022 to March 2024 and are now back to the levels seen in 2021. Speaker 300:12:13We continue to monitor the impacts of elevated interest rates on our multifamily book. Higher rates may reduce the ability of multifamily borrowers to refinance their loans prior to maturity when they typically have a balloon payment due. While our near term maturities remain low, market maturities are expected to be elevated, which could put additional pressure on the multifamily market. Roughly 1.6% of our multifamily book is expected to mature in 2024 and approximately 3.5% is expected to mature in 2025. Our multifamily serious delinquency rate decreased slightly to 44 basis points as of March 31, 2024 from 46 basis points as of December 31, 2023. Speaker 300:13:10In addition to DUS, our primary multifamily risk sharing model, we completed 1 multifamily credit risk transfer in the Q1 through our multifamily CERT program. This transferred a portion of the credit risk on $11,500,000,000 of unpaid principal balance at the time of the transactions. Lastly, I'll touch on our current economic outlook. There is a significant amount of uncertainty related to the Federal Reserve's next steps on interest rates. While our economists currently expect 2 rate cuts from the Fed later this year, further persistence in inflation poses the possibility of 0 cuts in 2024. Speaker 300:13:56Home prices continue to be strong and our current forecast is that home prices will rise 4.8% in 2024, up 1.6 percentage points from last quarter's projection. We believe affordability challenges, the lock in effect and a low inventory of homes available for sale will likely persist this year. We expect single family mortgage originations to grow from $1,500,000,000,000 in 2023 to approximately $1,800,000,000,000 in 2024. Purchases are likely to continue to dominate the market given the rate environment and we estimate they will make up over 75% of single family mortgage originations this year. 2024 multifamily market origination volumes are estimated to be between 300 dollars to $340,000,000,000 up from an estimated $265,000,000,000 in volume for 2023, but down from $480,000,000,000 in 2022. Speaker 300:15:06We believe that with continued high interest rates, elevated new supply completions and higher than average vacancy rates, multifamily sales activity will remain subdued in the near term, which could result in additional declines in multifamily property values over the short term. Over the longer term, however, we expect sales and valuations will improve due to expected improvements in multifamily housing market fundamentals stemming from positive demographic trends and ongoing job growth. We expect rent growth to remain below historical averages in the 1% to 1.5% range in 2024 as a result of elevated new construction completions and many renters dealing with higher levels of consumer debt. Our expectations are based on many assumptions and our actual results could differ materially from our current expectations. I invite you to visit fanniemae.com where you'll find a financial supplement with today's filing that provides additional insights into our business. Speaker 300:16:17Thank you so much for joining us today. Operator00:16:20Thank you, everyone. That concludes today's call. You may disconnect.Read morePowered by