Daily Newsletter: GSEs' Net Worth Surged in 2021

Both Fannie Mae and Freddie Mac (the GSEs) reported substantial increases in their financial results for 2021 when compared to 2020 and a greatly improved net worth. Fannie Mae’s performance also improved from the third quarter of 2021 to the fourth, but Freddie Mac reported lower results. Fannie Mae had a net comprehensive income of $22.18 billion in 2021, nearly double the 2020 total of $11.81 billion. Fourth quarter results were up 7.0 percent from the prior quarter at $5.19 billion. Net interest income rose by $4.72 billion year-over-year to $29.59 billion and was 9.0 percent higher quarter-over-quarter at $7.59 billion. Fee and other income fell 46 percent from the third quarter to $60 million and was 22 percent lower for the year at $361 million. Credit related income shifted from an expense of $855 million in 2020 to revenue of $5.10 billion last year, driven by actual and forecasted home price growth, an increase in the volume of redesignations, and a reduction in expected losses occasioned by the pandemic. Single-family acquisition volume was $1.4 trillion in 2021 with purchase acquisitions accounting for $451.30 billion, the highest on record. Almost half of the purchase acquisitions involved first-time homebuyers. Refinance acquisitions dropped from $947.8 billion in 2020 to $903.7 billion. At the end of December, the company had 117,440 loans in forbearance , 0.7 percent of its single-family guaranty book of business. This is down from 3.0 percent at the end of 2020. The single-family delinquency rate declined to 1.25 percent at the end of the fourth quarter from 1.62 percent the prior quarter, but seriously non-current loans increased over that period as loans exited from forbearance and entered trial loan modifications. That rate was 0.81 at the end of the reporting period.

February 16, 2022 Housing News GSEs' Net Worth Surged in 2021 Both Fannie Mae and Freddie Mac (the GSEs) reported substantial increases in their financial results for 2021 when compared to 2020 and a greatly improved net worth. Fannie Mae’s performance also improved from the third quarter of 2021 to the fourt... (read more) Housing News Confidence Slips as Builders Face Big Material Delays There was another bit of erosion in builder confidence in February. The National Association of Home Builders (NAHB) said the NAHB/Wells Fargo Housing Market Index (HMI) dipped 1-point during the month to a reading of 82. It lost 1 point in January... (read more) Rob Chrisman Secondary, DSCR, Broker Products; Fannie and Freddie Updates; What's the CDFI Program? Things change and time passes. A little more than three months ago we “fell back” and now we have less than a month until most states in the U.S. change their clocks again (spring ahead). Less than two months ago, Ohio’s Community Savings Bancorp was... (read more) Mortgage Rates Mortgage Rates Continue Treading Water Near Multi-Year Highs There have been a few hours of a few days over the past week where mortgage rates have been just a bit higher than they are this afternoon. But for all practical purposes, rates continue operating in line with the highest levels since May 2019. Despite a multitude of news stories suggesting 30yr fixed rates somewhere in the medium-high 3.0% ran... (read more) 30 Yr. Fixed Rate 4.10% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 4.10% -0.02 0.40 15 Yr. Fixed 3.34% -0.01 0.40 30 Yr. FHA 3.70% -0.05 0.00 30 Yr. Jumbo 3.58% +0.03 0.00 5/1 ARM 3.70% -0.03 0.50 Updates Daily - Last Update: 2/16 15 Yr. Fixed Rate 3.34% -0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 3.69% +0.14 0.80 15 Yr. Fixed 2.93% +0.16 0.80 5/1 Yr. ARM 2.80% +0.09 0.30 Updates Weekly - Last Update: 2/10 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 4.05% +0.22 0.45 15 Yr. Fixed 3.37% +0.21 0.50 30 Yr. Jumbo 3.81% +0.19 0.39 Updates Weekly - Last Update: 2/16 MBS / Treasuries MBS Live Recap: No Whammies in Fed Minutes, Geopolitics, or Bond Volatility No Whammies in Fed Minutes, Geopolitics, or Bond Volatility Today ended up being one of the least volatile trading sessions for the bond market since last week's CPI/Bullard/Ukraine-induced surge. Overnight newswires called into question yesterday's news regarding Russian troops returning to base. With th... (read more) UMBS 30YR 3.0 100.03 +0.00 Price / Yield Change MBS UMBS 3.0 100.03 0.00 UMBS 3.5 102.22 -0.11 GNMA 3.0 100.88 +0.02 GNMA 3.5 102.55 -0.16 Pricing as of: 2/16 5:21PM EST 10 Year US Treasury 2.0417 -0.0017 Price / Yield Change US Treasury 2 YR Treasury 1.527 -0.050 5 YR Treasury 1.920 -0.017 7 YR Treasury 2.025 -0.006 10 YR Treasury 2.042 -0.002 30 YR Treasury 2.348 -0.013 Pricing as of: 2/16 5:21PM EST Latest Video Mortgage rates rising as demand for mortgages drops I don't worry too much about the flattening of the curve right now, says Bo... Fed minutes: No additional surprises The Fed minutes don't give us any more reason to be worried, says Josh Brow... Around the Web CNBC Federal Reserve releases minutes from its January meeting Calculated Risk Blog Thoughts on Housing Supply and Demand With 30-year mortgage rates above 4% Reuters Construction industry groups oppose Biden's executive order in letter to White House eyeonhousing.org Led by Lumber and Paint, Building Materials Prices Jump in January CNBC Retail sales surge 3.8% in January, much more than expected amid inflation rise Redfin Real Estate Investors Are Buying a Record Share of U.S. Homes Realtor.com Foreign Investor Acquisitions of U.S. Commercial Real EstateIncreased 49% in 2021 eyeonhousing.org Builder Confidence Eases on Supply-Side Constraints CNBC Treasury yields are mixed, with geopolitical tensions and Fed minutes in focus Calculated Risk Blog Wednesday: Retail Sales, Industrial Production, Homebuilder Survey, FOMC Minutes CNBC Vote on Biden Fed picks delayed as GOP presses for answers on Raskin's ties to firm CNBC European Central Bank member says its bond buying could end in the third quarter CNBC UK inflation rate climbs to 5.5%, remains at 30-year high

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