Quarterly Performance Report of the Housing GSEs - Second Quarter 2014

The Enterprises

(Freddie Mac and Fannie Mae)

• Combined second quarter net income of $5.0 billion compared to $9.3 billion in the first quarter of 2014
• Continued improvement in national home prices contributed to releases of loan loss reserves at both Enterprises
• Net income declined at both Enterprises mainly driven by lower income from private-label mortgage-related (PLS) securities settlements
• Combined loan loss reserves decreased $4.5 billion during the quarter
• Enterprise MBS issuance share continued to decline in the second quarter of 2014

The Federal Home Loan Bank Syste​m

• ​Aggregate second quarter 2014 income of $527 million compared to $567 million in the first quarter of 2014 and $691 million in the last quarter of 2013
• Aggregate advances increased by 11 percent over the quarter to $537 billion
• Advances increased to 62 percent of assets
• Retained earnings increased to $12.6 billion