Page 38 - May-June 2018 GSE Report Flip Book

22% $627
9
15 2016
2017 YTD 2018
FANNIE MAE AND FREDDIE MAC
MAJAYN-UAJRUYNE20210818
r
We also had $1 billion in net fair value gains this quarter primarily due to interest rate increases. Looking ahead, we expect to remain profitable on an annual basis for the foreseeable future. However, as we’ve discussed in the past, factors such as interest
rates and home prices are beyond our control, and fluctuations in these factors make our quarterly results potentially volatile. We expect to pay a $938 million dividend to Treasury in June 2018, and based on our strong first quarter results we will retain $3 billion in capital that should help us weather modest volatility in our results. (Press Release, Fannie Mae, 05/03/18)
sfer
FANNIE MAE’S SINGLE-FAMILY LOANS WITH CREDIT ENHANCEMENT
Single-Family Loans with Credit Enhancement
Credit Enhancement
2016
Percent of Outstanding Book
UPB Outstanding
2017
Percent of Outstanding Book
UPB Outstanding
YTD 2018
Percent of Outstanding Book
UPB Outstanding
Primary mortgage insurance & other(5)
$509B 18%
$566B 20%
$583B 20%
(6) Connecticut Avenue SecuritiesTM (CAS)
$503B 18%
$681B 24%
$731B 25%
Credit Insurance Risk TransferTM (CIRTTM)(7)
$101B 4%
$181B 6%
$193B 7%
Lender risk-sharing(6)
$23B 1%
$65B 2%
$78B 3%
(Less: loans covered by multiple credit
($211B) (8%) ($335B) (12%) ($362B) (12%) ___________________________________________________________________________________________
enhancements)
Total UPB of single-family loans with credit
enhancement ___________________________________
$925B 33% __________________
$1,158B 40% __________________
$1,223B 43% ___________________
ily Credit Risk Transfer Issuance
_
ily Credit Risk Tran
s Included in Credit Risk Transfe s, Balance of Covered Loans
ventional guaranty book in a CRT transaction f loans in a CRT transaction(7)
$233
$222
2014
Lender risk-sharing
Mae. Trademarks of Fannie Mae.
Freddie Mac reported comprehensive income of $2.2 billion for the first quarter of 2018,
$331
driven largely by the company’s strong competitive fundamentals, a $0.4 billion benefit
from the reduced corporate tax rate and continued guarantee book growth. Market-related
$239
impacts and gains from legacy asset dispositions were modest at $0.2 billion, after-tax,
$240
32%
40% 35%
30%
20%
10%
0%
Single-Fam
$1,002 $927
in the first quarter. Freddie Mac will not remit a dividend payment to the Treasury, as the company rebuilds its $3.0 billion capital buffer.
$189 $103
$102 $71
“ F r e d d i e M a c d e l i v e r e d $ 2 . $ 27 6 b i l l i o n o f c o m p r e h e n s i v e i n c o m e t h i s q u a r t e r , d e s p i t e a m a j o r
$40
$17
change in interest rates,” said Freddie Mac CEO Donald H. Layton. “In a period with no
2015 2016 2017 YTD 2018
significant items and little impact from legacy asset dispositions, this demonstrated the
Connecticut Avenue Securities Credit Insurance Risk Transfer
increased stability of our earnings. ...In short, our results this quarter provide a particularly clear view of our earnings capacity and the progress we’ve made in fulfilling our mission by creating a better housing finance system for lenders, investors, families and taxpayers.” 12
$410
$44
$265
© 2018 by Canfield Press, LLC. All rights reserved. www.canfieldpress.com
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m
n
2
n
% Single-Family Conventional Guaranty Book