Page 53 - July-August 2018 GSE Report Flip Book

FANNIE MAE
JJUALN. U- ARUYG. 22001188
In Fannie Mae’s media call remarks, president and CEO Timothy Mayopoulos reviewed the company’s decade of progress, saying:
Nearly 10 years ago, Fannie Mae entered conservatorship in the depths
the financial crisis. For Fannie Mae, it has been a decade of reform and fundamental change. During these 10 years we have achieved more than most people thought possible, while remaining focused on our mission and purpose. We helped millions of people stay in their homes in the wake of the crisis and helped millions more buy, refinance, and rent homes in the years of recovery.
We returned to profitability in 2012 and have paid nearly $50 billion more in dividends to Treasury than we have received in taxpayer support. We built a strong book, improved our business model, and reduced risk to taxpayers. We have reduced our retained mortgage portfolio, reducing the company’s risk exposure. Today, guaranty fees are a stable and reliable primary driver of our revenue.
We have evolved from being a company that buys and stores credit risk
to one that also distributes credit risk, attracting global capital to the U.S. mortgage market. Over the past five years, we’ve transferred a portion of the credit risk on a nearly $1.4 trillion of single-family loans, measured in unpaid principal balance at the time of the transaction. As of the end of June, 35% of our single-family conventional guaranty book of business was covered by a credit risk transfer transaction.
At the same time, we are introducing industry-changing innovations for customers, investors, and other partners. These innovations will make housing finance better, safer, and more efficient for future generations.
We’re testing new technologies to make the mortgage process simpler and more certain. As we do so, we are partnering with customers and putting them at the center of everything that we do. Frankly, in the past we too often developed solutions based on what we thought our customers should want. Today, we use design thinking and customer co-development panels to create the solutions they actually want. Step by step, we’re advancing toward the day of the fully digital mortgage.
Deal by deal, we’re enhancing our position of world leadership in green financing for our multifamily customers. And last week, we issued the market’s first-ever securities indexed to the Secured Overnight Financing Rate (SOFR), a new benchmark alternative to LIBOR.
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