WASHINGTON - Fannie Mae (OTCQB: OTC:FNMA (ST:FNMA)) today announced the appointment of Scott D. Stowell to its Board of Directors. Stowell, a veteran with nearly four decades in the U.S. homebuilding industry, joins the company's board as it seeks to enhance its role in expanding access to mortgage credit and financing affordable rental housing.
Michael J. Heid, Fannie Mae's Board Chair, expressed confidence in Stowell's addition, stating his industry perspective will be critical in addressing current housing challenges. Priscilla Almodovar, President and CEO of Fannie Mae, also emphasized that Stowell's comprehensive experience will be an asset to the board, particularly as they navigate persistent supply and construction issues in the housing market.
Stowell is the founder of Capital Thirteen LLC, where he serves as CEO and President, providing advisory and investment services. His board memberships include Toll Brothers (NYSE:TOL), Pacific Mutual Holding Company, and HomeAid America. His tenure at Standard Pacific Homes saw him rise to CEO before the company's merger with Ryland Group to form CalAtlantic Group, Inc., where he served as Executive Chairman. Post-merger with Lennar Corporation (NYSE:LEN), Stowell was on their Board of Directors until 2021.
Fannie Mae's mission involves promoting equitable and sustainable access to homeownership and quality, affordable rental housing. The company is known for enabling the 30-year fixed-rate mortgage and fostering responsible innovation to make homebuying and renting more accessible.
This board appointment comes as Fannie Mae continues to address the needs of a changing housing market, with a focus on responsible expansion of credit and housing finance. The information for this article is based on a press release statement.
"In other recent news, Fannie Mae reported a dip in net income to $4 billion in Q3 of 2024, a decrease from $4.5 billion in the previous quarter. Despite these challenges, the company provided a substantial $106 billion in liquidity to the housing market, aiding 383,000 households. The company's CFO, Chryssa Halley, highlighted the impact of hurricanes on credit losses and the expectations for home sales and price growth.
Fannie Mae's economics team projects a total of 4.8 million home sales in 2024, with a slight increase to 5.2 million units in 2025. They also expect home price growth to slow to 3.6% in 2025 after a 5.8% increase in 2024.
However, there were some bearish indicators, with a decrease in the benefit for credit losses by $273 million in Q3 and an increase in multi-family provision for credit losses due to ARM loans write-downs. The multi-family serious delinquency rate also increased to 56 basis points at the end of September.
On the bullish side, Fannie Mae's net worth increased to $90.5 billion, enhancing its financial stability, and the company reduced its minimum regulatory capital shortfall by $17 billion since the start of the year. These are some of the recent developments that have unfolded at Fannie Mae."
InvestingPro Insights
As Fannie Mae (OTCQB: FNMA) welcomes Scott D. Stowell to its Board of Directors, investors may find additional context from recent financial data and expert analysis valuable. According to InvestingPro, Fannie Mae's market capitalization stands at $12.34 billion, reflecting its significant presence in the mortgage finance industry.
Despite the company's crucial role in the housing market, InvestingPro Tips highlight that Fannie Mae operates with a substantial debt burden and may face challenges in making interest payments. This financial strain could impact the company's ability to expand its initiatives in affordable housing and mortgage credit accessibility, which are key focus areas mentioned in the board appointment announcement.
On a more positive note, InvestingPro data shows that Fannie Mae's revenue for the last twelve months as of Q3 2023 was $30.75 billion, with a revenue growth of 8.92% over the same period. This growth aligns with the InvestingPro Tip indicating that analysts anticipate sales growth in the current year, potentially supporting the company's mission to promote sustainable access to homeownership and rental housing.
Investors should note that Fannie Mae's stock has shown significant volatility, with the price falling considerably over the last three months. However, it's currently trading near its 52-week low, which could present an opportunity for those believing in the company's long-term prospects under its evolving board leadership.
For a more comprehensive analysis, InvestingPro offers 11 additional tips on Fannie Mae, providing deeper insights into the company's financial health and market position.
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