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FHFA Report: GSEs Generate Positive Annual Income for First Time Since '06

Dec 16, 2013

Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco has released FHFA’s 2013 Performance and Accountability Report (PAR) detailing the Agency’s progress as regulator and conservator of Fannie Mae and Freddie Mac (the Enterprises) and regulator of the 12 Federal Home Loan Banks (FHLBs). The PAR discusses accomplishments, ongoing efforts to assist homeowners, challenges and continued efforts to meet FHFA’s strategic goals for FY 2013. For the fifth consecutive year, FHFA received an unmodified, or “clean,” audit opinion on its financial statements from the U.S. Government Accountability Office. Key developments detailed in the PAR: ►Provided results and conclusions of 2012 examinations of Fannie Mae, Freddie Mac and the FHLBs in FHFA’s annual Report to Congress. In their fourth year of conservatorships, the Enterprises were both deemed “critical concerns,” but generated positive annual income for the first time since 2006. As of Sept. 30, 2013, their cumulative draws under the Senior Preferred Stock Purchase Agreements with the U.S. Department of the Treasury totaled $187.5 billion and they have paid $146.6 billion in cash dividends to Treasury. ►Established Common Securitization Solutions (CSS), a joint venture between Fannie Mae and Freddie Mac that will manage the development of the common securitization platform and associated data and legal infrastructure and a significant goal in FHFA’s Strategic Plan for Enterprise Conservatorships. ►Achieved key FHFA 2013 Scorecard items, including Fannie Mae and Freddie Mac executing multiple risk-sharing transactions totaling more than $30 billion as a means for enticing the private sector to share single-family mortgage credit risk. ►Worked with Fannie Mae and Freddie Mac to complete more than 2.97 million foreclosure prevention actions and kicked off a national public awareness campaign to educate eligible homeowners about the Home Affordable Refinance Program (HARP) to increase refinances. As of August, nearly 2.9 million homeowners had refinanced through HARP since the program’s inception. ►Achieved third consecutive year of profitability for all 12 FHLBs in FY2013.
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Dec 16, 2013
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