Q4 2023 Federal National Mortgage Association Earnings Call

Good day, and welcome to the Fannie Mae fourth quarter and full year 2023 financial results Conference call. At this time I will now turn it over to your host Pizza Kal Fannie Mae's director of external communications.

Operator: Good day, and welcome to the Fannie Mae fourth quarter and full year 2023 financial results conference call. At this time, I will now turn it over to your host, Pete Backell, Fannie Mae's Director of External Communications.

Pete Backell: Hello, and thank you all for joining today's conference call to discuss Fannie Mae's fourth quarter and full year 2023 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.

Hello, and thank you all for joining today's conference call to discuss Fannie Mae's fourth quarter and full year 2023 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.

And the company's business plans and their impact.

Future events may turn out to be very different from these statements the risk factors and forward looking statements sections in the company's 2023 Form 10-K filed today describe factors that may lead to different results.

Pete Backell: The risk factors and forward-looking statements sections in the company's 2023 Form 10-K file today describe factors that may lead to different results. A recording of this call may be posted on the company's website. We ask that you do not record this call for public broadcast and that you do not publish any full transcript.

A recording of this call may be posted on the company's website.

We ask that you do not record this call for public broadcast and that you do not publish any full transcript.

Pete Backell: I'd now like to turn the call over to Fannie Mae Chief Executive Officer Priscilla Amodovar and Fannie Mae Chief Financial Officer Krista C. Halley. Welcome, and thank you for joining us today. I'll begin by spending a few minutes on the economic environment, and then we'll turn to our financial and mission performance for 2023. After that, our Chief Financial Officer, Chris O'Haley, will discuss our full year and fourth quarter results in more detail. Let me begin with the economic environment.

I'd now like to turn the call over to Fannie Mae Chief Executive Officer, Priscilla Almodovar, and Fannie Mae Chief Financial Officer, Chris is C. Halle.

Welcome and thank you for joining us today.

I'll begin by spending a few minutes on the economic environment, and then we'll turn to our financial and mission performance for 2023.

After that our Chief Financial Officer, Chris Haley, who will discuss our full year and fourth quarter results in more detail.

Let me begin with the economic environment.

The economy held up much stronger in 2023 than we anticipated at the outset of the year.

Priscilla Amodovar: The economy held up much stronger in 2023 than we anticipated at the outset of the year. GDP grew at an annual rate of 3.1%, and inflation came in at 3.2%, down from 7.1% in 2022, in part due to the 100 basis points increase in the Fed funds rate last year. This increase in rates had a direct effect on housing, our business, and the people we serve. 30-year mortgage rates reached a 23-year high of nearly 8% in October 2023 and averaged 6.8% over the full year. That was up 1.5 percentage points from the prior year.

GDP grew at an annual rate of three 1%.

Inflation came in at three 2% down from seven 1% in 2022 in part due to the 100 basis point increase in the fed funds rate to last year.

This increase in rates had a direct effect on housing our business and the people we serve.

30 year mortgage rates reached a 23 year high of nearly 8% in October 2023, and averaged six 8% over the full year.

That was up one five percentage points from the prior year.

The housing market is much different than it was just a few years ago back then borrowers were able to access financing at historically low mortgage rates.

Priscilla Amodovar: The housing market is much different than it was just a few years ago. Back then, borrowers were able to access financing at historically low mortgage rates. Many of these borrowers sat tight in their homes thanks to the low rates they locked in during 2020 and 2021. This lock-in effect contributed to fewer homes available for sale.

Any of these borrowers sat tight in their homes, thanks to the low rates they locked in during 2020 in 2021. This lock in effect contributed to fewer homes available for sale.

Priscilla Amodovar: Despite this backdrop, home ownership is still in demand by many consumers, and supply has not kept pace. One outcome of this is that home prices in 2023 were more resilient than expected; single-family home prices increased by an estimated 7.1%. You will hear these higher home prices as a theme in our annual results. In addition, overall, single-family mortgage originations remained low at $1.5 trillion, a 37% decline year on year. The multifamily sector also faced challenges. Property values declined, and the market saw significant new units in some areas, while in other areas, supply continued to be constrained. At a national level, 2023 rent growth fell, and we expect that it turned negative in the fourth quarter. Even so, affordability continues to remain a challenge for renters in many parts of the country.

Despite this backdrop homeownership is still in demand by many consumers and supply has not kept pace.

We'll now come at this is that home prices in 2023, when more resilient than expected.

Single family home prices increase by an estimated seven 1% you.

You will hear these higher home prices as a theme and our annual results. In addition, overall single family mortgage originations remained low at one five trillion dollars, a 37% decline year on year.

Multifamily sector also faced challenges property values declined and the market saw a significant new units in some areas while in other areas supply continued to be constrained.

At a national level 2023 rent growth fell and we expect that it turned negative in the fourth quarter.

Even so affordability continues to remain a challenge for renters in many parts of the country.

Overall multifamily mortgage originations declined substantially year on year to an estimated range of $2 55 to $2 $75 billion compared to $480 billion in 2022.

Priscilla Amodovar: Overall multifamily mortgage origination declined substantially year on year to an estimated range of $255 to $275 billion compared to $480 billion in 2022. Turning to our financial results, we reported $17.4 billion in net income in 2023, compared to $12.9 billion of net income in 2022. $3.9 billion of this was attributable to the fourth quarter.

Turning to our financial results, we reported $17 4 billion and net income in 2023 compared to $12 9 billion of net income in 2022.

$3 $9 billion of this was attributable to the fourth quarter.

The strength in home prices throughout the year had a direct impact on our earnings largely due to the release of credit reserves that reflected higher actual and forecasted home prices.

Priscilla Amodovar: The strength in home prices throughout the year had a direct impact on our earnings, largely due to the release of credit reserves that reflected higher actual and forecasted home prices. We continue to manage our capital shortfall through retained earnings and our credit risk transfer program. Our net worth increased to nearly $78 billion at the end of the year.

We continue to manage our capital shortfall through retained earnings and our credit risk transfer program.

Our net worth increased to nearly $78 billion at the end of the year.

Priscilla Amodovar: This increased bolsters our financial stability and enables us to continue being a reliable source of mortgage credit for America's homeowners and renters. In 2023, working with our partners in housing finance, we provided $369 billion in liquidity. This helped 1.5 million households buy, refinance, or rent a home. This included approximately 189,000 low and very low income households. It also included 482,000 multifamily rental units, a significant majority of which were affordable to households earning at or below 120% of the area median income, and we helped over 380,000 first-time homebuyers to purchase a home. In all this work, we are guided by our mission.

This increase bolsters, our financial stability and enables us to continue being a reliable source of mortgage credit for Americas homeowners and renters.

In 2023, working with our partners and housing finance, we provided $369 billion in liquidity.

This helped one 5 million households by refinance or rent a home.

This included approximately 189000, low and very low income households. It also included 482000 multifamily rental units a significant majority of which were affordable to households, earning at or below 120% of area median income.

And we helped over 380001st time homebuyers to purchase a home.

And all of this work we are guided by our mission.

Priscilla Amodovar: Let me share some examples of how we brought our mission to life in 2023, focusing on two key obstacles that many homebuyers face, insufficient credit and upfront costs. First, regarding insufficient credit, we continued to use innovative ways to help the housing system reach consumers with no or thin credit files. We're using on-time rent payments to help renters build and improve their credit scores. Through the end of last year, according to our vendors, we helped nearly 28,000 renters establish credit scores, and participating renters who already had a credit score and saw an improvement had an average increase of 35 points. In our flagship automated underwriting system, Desktop Underwriter, we've made it possible for lenders to consider on-time rent payments and credit evaluations or to assess the cash flow and credit worthiness of borrowers who don't have credit.

Let me share some examples of how we brought our mission to life in 2023.

Focusing on two key obstacles that many homebuyers space and sufficient credit and upfront costs.

First regarding insufficient credit we continued to use innovative ways to help the housing system see consumers with no or thin credit files.

We are using on time rent payments to help renters build and improve their credit scores.

The end of last year. According to our vendors. We helped nearly 28000 renters established credit scores and participating renters, who already had a credit score and saw an improvement had an average increase of 35 points.

In our flagship automated underwriting system desktop underwriter, we've made it possible for lenders to consider on time rent payments and credit evaluations or to assess the cash flow and credit worthiness of borrowers who don't have a credit score.

As to lowering upfront cost of housing.

Priscilla Amodovar: As to lowering the upfront cost of housing, we continue to modernize the home valuation process by using models and analytics that allow us to offer less costly appraisal waivers and alternatives. Through these options, low to moderate-income borrowers saved an estimated $52 million in upfront costs in 2023. We're also giving lenders the option to use an attorney opinion letter instead of a traditional lender's title insurance policy on some transactions, and we increased the allowable loan-to-value ratios for two- to four-unit properties. This reduces upfront costs for these property types and preserves affordable rental housing. While we still have a lot of work to do to make the housing system work for everyone, we're very proud of the progress we have made so far.

We continue to modernize the home valuation process by using models and analytics that allow us to offer less costly appraisal waivers and alternatives.

Through these options low to moderate income borrowers saved an estimated $52 million in upfront costs in 2023.

We're also giving lenders the option to use an attorney opinion letter instead of a traditional lenders title insurance policy on some transactions.

And we increase the allowable loan to value ratios for two to four unit properties.

This reduces upfront cost for these property types and preserves affordable rental housing.

While we still have a lot of work to do to make the housing system work for everyone. We're very proud with the progress we have made so far.

Priscilla Amodovar: As I wrap up, 2023 marked Fannie Mae's 85th anniversary. As of September 30, we owned or guaranteed approximately one in four single-family mortgages and about one-fifth of all multi-family mortgage debt outstanding in the United States. We take our responsibility seriously, our mission guides us, the efforts we've taken to strengthen our business, and our strong risk management focus are the foundation that allows us to deliver on our mission.

As I wrap up.

2023 marked Fannie mae's 85th anniversary.

As of September 30, we owned or guaranteed approximately one and four single family mortgages and about one fifth of multifamily mortgage debt outstanding in the United States.

We take our responsibility seriously our mission guides us the efforts, we've taken to strengthen our business and our strong risk management focus are the foundation that allows us to deliver on our mission.

Priscilla Amodovar: As we move into 2024, we remain dedicated to expanding housing opportunities in ways that are responsible and sustainable. Already this year, we've announced a $2,500 credit to eligible home-ready borrowers who make less than or equal to 50% of the area median income, helping to address upfront costs for very low-income borrowers. We also announced enhanced single-family MBS disclosures, the Mission Index. This index provides insights into our mission activity, allowing MBS investors to allocate their capital in support of affordable housing and underserved borrowers and markets. Finally, before I turn it over to Krissa, I want to thank our employees for making all that we did in 2023 possible; the work they do matters.

As we move into 2024, we remain dedicated to expanding housing opportunities in ways that are responsible and sustainable.

Already this year, we've announced a $2500 credit to eligible home muddy borrowers, who made less than or equal to 50% of area median income helping to address upfront cost to very low income borrowers.

We also announced enhanced single family MBS disclosures the mission index.

This index provides insights into our mission activity, allowing MBS investors to allocate their capital in support of affordable housing and underserved borrowers and markets.

Finally, before I turn it over to Chris I want to thank our employees for making all that we did in 2023 possible.

The work they do matters the work matter to the people who live in the homes and apartments, we help finance it matters to communities throughout the nation and it matters to our housing partners.

Krista C. Halley: The work matters to the people who live in the homes and apartments we help finance. It matters to communities throughout the nation, and it matters to our housing partners. Now, Crystal will discuss our full year and fourth quarter financial results. Thank you, Priscilla, and good morning.

Now Christian will discuss our full year and fourth quarter financial results.

Priscilla and good morning as.

Krista C. Halley: As Priscilla mentioned, we reported $17.4 billion in net income in 2023, compared to $12.9 billion in 2022. Net revenues remain strong, with $28.8 billion in net interest income, thanks mainly to healthy guarantee fee income. This is slightly lower than 2022's net interest income. While our base guarantee fee income grew slightly in 2023, higher interest rates during the year drove a decline in deferred guarantee fee income due to lower refinance activity. This was offset by an increase in income due to higher yields on securities in our corporate liquidity portfolio, also driven by the higher interest rate environment.

As Priscilla mentioned, they reported 17 point or $1 billion in net income in 2023 compared to $12 $9 billion in 2022.

Net revenues remained strong with $28 $8 billion in net interest income thanks, mainly to healthy guaranty fee income.

Slightly lower than 2020 twos net interest income while our base guaranty fee income grew slightly in 2023 higher interest rates during the year drove a decline in deferred guarantee fee income due to lower refinance activity.

This was offset by an increase in income due to higher yields on securities and our corporate liquidity portfolio.

Also driven by the higher interest rate environment.

We recognized a $1 7 billion dollar benefit for credit losses in 2023, primarily due to stronger than expected actual and forecasted home prices. Conversely in 2022, we recorded in over $6 billion provisions for credit losses.

Krista C. Halley: We recognized a $1.7 billion benefit for credit losses in 2023, primarily due to stronger-than-expected actual and forecasted home prices. Conversely, in 2022, we recorded an over $6 billion provision for credit losses. For the fourth quarter of 2023, net income was $3.9 billion, driven by strong net interest income from guarantee fees and our corporate liquidity portfolio. Now, let me turn to our segment.

For the fourth quarter of 2023, net income was $3 $9 billion driven by strong net interest income from guarantee fees and our corporate liquidity portfolio.

Now, let me turn to our segments.

Krista C. Halley: Starting with single family, we reported $14.9 billion in net income in 2023, an increase of $4.1 billion compared to 2022. This increase was driven by the release of credit reserves in 2023, while those reserves increased substantially in the prior year. Our reserve release was mainly due to an improvement in actual and forecasted home prices.

Starting with single family they reported $14.9 billion in net income in 2023, an increase of $4 $1 billion compared to 2022.

This increase was driven by the release of credit reserves in 2023, while those reserves increased substantially in the prior year.

Our reserve release was mainly due to an improvement in actual and forecasted home prices.

Krista C. Halley: We acquired $316 billion of single-family loans last year, a nearly 50% decrease compared to 2022 and our lowest volume since 2000. Higher mortgage rates in 2023 drove refinance volumes to their lowest level since before 2000. In fact, our percentage of acquisitions that were purchased mortgages last year grew to 86%.

We acquired $316 billion of single family loans last year, and nearly 50% decrease compared to 2022 and our lowest volume since 2000.

Higher mortgage rates in 2023 drove refinance volumes to their lowest levels since before 2000.

In fact, our percentage of acquisitions that were purchased mortgages last year grew to 86%.

Our overall single family book of business remains strong as of year end with a weighted average mark to market loan to value ratio of 51% and weighted average credit score at origination of $7 53.

Krista C. Halley: Our overall single-family book of business remains strong as of year-end, with a weighted average mark-to-market loan-to-value ratio of 51% and a weighted average credit score at origination of 753. Additionally, nearly 85% of our single-family book as of year-end had interest rates below 5%. So, even if interest rates decline meaningfully, most of the borrowers whose loans are in our single-family book still would not be incentivized to refinance. Fixed-rate mortgage loans made up 99% of our single-family book as of the end of last year.

Nearly 85% of our single family book as of yearend had interest rates below 5%.

Even if interest rates decline meaningfully most of the borrowers whose loans are in our single family book still would not be incentivized to refinance.

Fixed rate mortgage loans made up 99% of our single family book as of the end of last year fixed rate loans protect mortgage borrowers against interest rate shocks on their mortgage payments.

Krista C. Halley: Fixed Rate Mortgages Protect Mortgage Borrowers Against Interest Rate Shocks on Their Mortgage Payments. Our single-family serious delinquency rate remained near historically low levels at 55 basis points as of December 31, compared to 65 basis points as of the end of 2022. In addition to market factors, this is a testament to the enhanced underwriting policies, loan workout options, and support we give to lenders and borrowers.

Our single family serious delinquency rate remained near historically low levels at 55 basis points as of December 31, compared to 65 basis points as of the end of 2022 in.

In addition to market factors. This is a testament to the enhanced underwriting policies loan workout options and support we give to lenders and borrowers.

Krista C. Halley: Turning to our Credit Risk Transfer Program, in 2023, we executed 17 single-family credit risk transfer transactions between our Connecticut Avenue Securities and Credit Insurance Risk Transfer Programs, transferring a portion of the credit risk on approximately $308 billion of unpaid principal balance at the time of the transaction. We paid $1.4 billion in annual premiums in 2023 on our outstanding single-family credit risk transfer transactions. Now in multifamily, we reported $2.6 billion in net income in 2023, an increase of $400 million compared to 2022. This was primarily due to a decrease in the provision for credit losses year over year.

Turning to our credit risk transfer program in 2023, they executed 17 single family credit risk transfer transactions between our Connecticut Avenue Securities and credit insurance risk transfer programs transferring a portion of the credit risk on approximately.

$308 billion of unpaid principal balance at the time of the transactions we.

We paid $1 $4 billion in annual premiums in 2023 on our outstanding single family credit risk transfer transactions.

Now in multifamily, we reported $2 $6 billion in net income in 2023, an increase of $400 million compared to 2022.

This was primarily due to a decrease in the provision for credit losses year over year.

Krista C. Halley: In 2022, we recorded a $1.2 billion provision for multifamily credit losses, mostly driven by our senior housing. In 2023, we recorded a $495 million provision for multifamily credit losses due primarily to changes in loan activity and declining property values on our overall multifamily book. Our seniors housing loans did not drive our multifamily provision for credit losses in 2023 because of loss mitigation activities we performed last year and some recovery and property financial. However, our allowance for seniors housing loans remained elevated.

In 2022, we recorded a $1 2 billion provision for multifamily credit losses, mostly driven by our seniors housing loans in 2023, we recorded a $495 million provision for multifamily credit losses, due primarily to changes in loan activity.

And declining property values on our overall multifamily book.

Our seniors housing loans did not drive our multifamily provision for credit losses in 2023 because of loss mitigation activities, we performed last year and some recovery in property financials.

Our allowance for seniors housing loans remained elevated.

Krista C. Halley: Turning to our acquisitions, we acquired $53 billion in multifamily loans last year, down 24% from 2022. Continued market uncertainty and high interest rates kept total market volumes low. Based on our analysis, we met the mission requirements set forth by FHFA for last year that required that at least 50% of our 2023 multifamily business volume focus on certain affordable and underserved market segments. The multifamily loans we acquired in 2023 had a weighted average original loan to value ratio of 59%. These loans also had a weighted average debt service coverage ratio of 1.6 times.

Turning to our acquisitions, we acquired $53 billion in multifamily loans last year down 24% from 2022 continued market uncertainty and high interest rates kept total market volume slow base.

Based on our analysis, we met the mission requirements set forth by FHFA for last year that required that at least 50% of our 2023 multifamily business volume focus on certain affordable and underserved market segments.

The multifamily loans, we acquired in 2023 had a weighted average original loan to value ratio of 59%.

<unk> also had a weighted average debt service coverage ratio of one six times.

Krista C. Halley: The overall credit profile of our multifamily book remains strong, with a weighted average original loan-to-value ratio of 63% and a weighted average debt service coverage ratio of 2 times. We continue to monitor the impacts of elevated interest rates on our multifamily books. Higher rates may reduce the ability of multifamily borrowers to refinance their loans prior to maturity when they typically have a balloon payment due. However, our near-term maturities remain low. Roughly 2% of our multifamily book is expected to mature in 2024, and approximately 3.5% is expected to mature in 2025. Elevated interest rates also result in higher monthly payments for borrowers with adjustable-rate mortgages, which may lower their debt service coverage ratios.

The overall credit profile of our multifamily book remains strong with a weighted average original loan to value ratio of 63% and a weighted average debt service coverage ratio of two times.

We 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 too.

Our near term maturities remain low roughly 2% of our multifamily book is expected to mature in 2024 and approximately three 5% is expected to mature in 2025.

Elevated interest rates also result in higher monthly payments for borrowers with adjustable rate mortgages, which may lower their debt service coverage ratios as of the end of December adjustable rate mortgages made up about 9% of our multifamily book.

Krista C. Halley: As of the end of December, adjustable rate mortgages made up about 9% of our multifamily book. Our multifamily serious delinquency rate increased to 46 basis points as of December 31, 2023 from 24 basis points as of the same time the prior year, driven by stress and our seniors housing. We actively pursue loss mitigation actions when appropriate, such as loan workouts, which may resolve delinquencies. However, if appropriate workouts cannot be achieved, the loans are foreclosed upon.

Our multifamily serious delinquency rate increased to 46 basis points as of December 31, 2023 from 24 basis points as of the same time the prior year driven by stress in our seniors housing loans.

We actively pursue loss mitigation actions when appropriate such as loan workouts, which may resolve delinquencies if appropriate workouts cannot be achieved the loans are foreclosed upon our.

Krista C. Halley: Our multifamily serious delinquency rate as of December 31st is down from the recent peak of 54 basis points as of September 30th because of these loss mitigation actions and foreclosures. We expect these activities will continue into 2024, which may further decrease our multifamily serious delinquency rate. Our primary form of multifamily risk sharing is our Delegated Underwriting and Servicing, or DUS, program, which shares risk on the loans we acquire with our network of DUS lenders.

Our multifamily serious delinquency rate as of December 31st is down from the recent peak of 54 basis points as of September 30th because of these loss mitigation actions in foreclosures.

We expect these activities will continue into 'twenty 'twenty, four which may further decrease our multifamily serious delinquency rate.

Our primary form of multifamily risk sharing is our delegated underwriting and servicing or a desk program, which shares risk on the loans, we acquire with our network of dust lenders. In addition to this risk sharing in 2023, we completed two multifamily credit risk transfer transactions, which track.

Krista C. Halley: In addition to this risk sharing, in 2023, we completed two multifamily credit risk transfer transactions, which transferred a portion of the credit risk on nearly $31 billion of unpaid principal balance at the time of the transaction. Turning to capital as of the end of the year, we remain significantly undercapitalized with a $243 billion shortfall to the amount of capital needed to be fully capitalized. This was a $15 billion improvement compared to the $258 billion shortfall at the end of 2022.

<unk> a portion of the credit risk on nearly $31 billion of unpaid principal balance at the time of the transactions.

Turning to capital as of the end of the year, we remain significantly under capitalized with a $243 billion shortfall to the amount of capital needed to be fully capitalized.

This was a 15 billion dollar improvement compared to the $258 billion shortfall at the end of 2022.

Krista C. Halley: Before we close out today, I'll share some thoughts on our macroeconomic outlook for 2024. Our economists have replaced their call for a modest recession with an expectation of positive but below-trend growth in 2024. However, heightened uncertainty and significant downside risks, including geopolitical risks, remain, and in their view, the economy still faces a higher-than-normal risk of recession.

Before we close out today I'll share some thoughts on our macroeconomic outlook for 2024.

Our economists have replace their call for a modest recession with an expectation for positive but below trend growth in 2024.

However, heightened uncertainty and significant downside risks, including geopolitical risks remain and in their view of the economy still faces a higher than normal risk of recession. The market expects the federal reserve to cut interest rates. This year, which we believe will lead to a further pull back in mortgage rates.

Krista C. Halley: The market expects the Federal Reserve to cut interest rates this year, which we believe will lead to a further pullback in mortgage rates. We currently expect the 30-year fixed-rate mortgage rate to average 6.1% in 2024. While affordability challenges, the lock-in effect, and a low inventory of homes available for sale will likely persist, single-family home sales are expected to begin a slow recovery. Because of this, they expect single-family mortgage originations to grow from $1.5 trillion in 2023 to nearly $2 trillion in 2024. Purchases are likely to continue to dominate the market given the rate environment, and we estimate they will make up approximately 75% of single-family mortgage originations this year. In the multifamily market, we expect to continue to see similar trends in 2024 that we saw last year.

We currently expect the 30 year fixed rate mortgage rate to average six 1% in 2024, while affordability challenges the lock in effect in a low inventory of homes available for sale will likely persist single family home sales are expected to begin a slow recovery.

Cause of this we expect single family mortgage originations to grow from $1 five trillion dollars in 2023 to nearly two trillion dollars in 2024.

Purchases are likely to continue to dominate the market given the rate environment and we estimate they will make up approximately 75% of single family mortgage originations. This here.

In the multifamily market, but we expect to continue to see similar trends in 2024 that we saw last year given elevated interest rates abundant supply in some markets and muted rent growth. We believe multifamily housing starts will likely decline this year we.

Krista C. Halley: Given elevated interest rates, abundant supply in some markets, and muted rent growth, we believe multifamily housing starts will likely decline this year. We expect rent growth to remain below recent averages in the 1 to 1.5% range in 2024, as a result of rising levels of consumer debt, elevated new construction completions, and anticipated slowing job growth. Multifamily origination volumes are expected to remain subdued in 2024 at between $295 and $325 billion.

We expect rent growth to remain below recent averages in the one to one 5% range in 2024 as a result of rising levels of consumer debt elevated new construction completions and anticipated slowing job growth.

Multifamily origination volumes are expected to remain subdued in 2024 at between 295 and $325 billion.

I invite you to visit our web pages, where you'll find a financial supplement with today's filing that provides additional insights into our business.

Krista C. Halley: I invite you to visit our websites, where you'll find a financial supplement with today's filing that provides additional insights into our business. Thank you for joining us today. Thank you, everyone. That concludes today's call. You may disconnect. Thanks for watching!

Thank you for joining us today.

Thank you everyone that concludes today's call you may disconnect.

Yeah.

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