Quarterly Performance Report of the Housing GSEs - Fourth Quarter 2014

The Enterprises

(Freddie Mac and Fannie Mae)

• Combined full-year earnings of $21.9 billion compared to $132.7 billion in 2013
• Losses on derivatives of $14.1 billion driven by a decrease in longer-term swap rates during the year
• Proceeds from private-label mortgage-related securities (PLS) settlements totaled $10.9 billion in 2014
• Loan loss reserves decreased $12.0 billion in 2014, mostly due to a decrease in seriously delinquent loans and rising national house prices
• Enterprise MBS issuance continued to trend down in 2014

The Federal Home Loan Bank System

• Aggregate 2014 income of $2.3 billion compared to $2.5 billion in 2014
• Aggregate advances increased by 14.5 percent over the year to $570.7 billion
• Advances make up at 62.5 percent of assets
• Aggregate retained earnings increased to $13.2 billion