Quarterly Performance Report of the Housing GSEs - Second Quarter 2015

The Enterprises

(Freddie Mac and Fannie Mae)

• Combined second quarter 2015 earnings of $8.8 billion rose from $2.4 billion in the first quarter of 2015.
• Gains on derivatives of $5.6 billion were driven by an increase in medium‐ and longer‐term swap rates during the quarter.
• Loan loss reserves decreased $2.2 billion during the quarter.
• Enterprise MBS issuance dollar volume increased in the second quarter while the Enterprises’ percent of total issuances decreased slightly to 67 percent.

 The Federal Home Loan Bank System

• The Federal Home Loan Banks of Des Moines and Seattle merged on May 31, 2015.
• Aggregate Q2 2015 income of $669 million fell from $1.023 billion in Q1 2015.
• The FHLBank of Boston received $135 million in litigation settlements.
• Aggregate advances increased to $592 billion, rising at all FHLBanks over the quarter.
• Aggregate retained earnings decreased slightly to $13.7 billion due to accounting effects from the merger.
• Mandatorily redeemable capital stock decreased to $0.4 billion from $2.0 billion in the previous quarter as the FHLBanks of Des Moines and Seattle made significant redemptions and repurchases as part of the merger agreement.