Quarterly Performance Report of the Housing GSEs - First Quarter 2015

​The Enterprises

(Freddie Mac and Fannie Mae)

• Combined first quarter earnings of $2.4 billion compared to $1.5 billion in the fourth quarter of 2014
• Losses on derivatives of $4.2 billion driven by a decrease in longer-term swap rates during the quarter
• Loan loss reserves decreased $8.4 billion during the quarter, mostly due to increased charge-offs as both Enterprises adopted new regulatory guidance issued by FHFA that changed the guidelines for when a loan is determined to be uncollectable
• Enterprise MBS issuance remained relatively level at 70% of total issuances

The Federal Home Loan Bank System

• Aggregate first quarter income of $1.0 billion compared to $553 million in the fourth quarter of 2014
• The FHLBank of San Francisco received a litigation settlement of $459 million
• Aggregate advances decreased by 5.0 percent over year-end 2014 to $542.2 billion
• Advances make up 61.5 percent of assets and 66.6 percent of consolidated obligations
• Aggregate retained earnings increased to $13.8 billion
• The FHLBank of Seattle divested its entire private-label MBS portfolio in preparation to merge with the FHLBank of Des Moines