Alert June 25, 2013

FHFA Releases Annual Report to Congress

The FHFA released its fifth annual report to Congress summarizing its supervisory and regulatory activity in 2012 including its examination of Fannie Mae, Freddie Mac, and the twelve Federal Home Loan Banks as well as the banks’ Office of Finance. The report notes that while Fannie Mae and Freddie Mac each generated positive income for the first time since 2006, they remained "critical concerns" in 2012, and the ongoing stress in the nation’s housing markets continues to pose significant challenges. The report also highlights that Fannie Mae and Freddie Mac guaranteed $1.3 trillion in new mortgages in 2012, representing 77 percent of all mortgages originated that year, and that since September 2008, Fannie Mae and Freddie Mac have completed nearly 2.7 million actions to prevent foreclosures—more than half of which have been loan modifications.