This quarterly report provides an overview of key aspects of the financial condition of Fannie Mae and Freddie Mac during conservatorship.​

Section 1217 of the Housing and Economic Recovery Act of 2008 (HERA) requires the Director of the Federal Housing Finance Agency (FHFA) to conduct a study on the extent to which loans and securities used as collateral to support Federal Home Loan Bank (FHLBank) advances are consistent with the interagency guidance on nontraditional mortgage products.

This report describes the collateral that secures outstanding advances at the Federal Home Loan Banks (FHLBanks) as of December 31, 2009. It is based upon an annual survey conducted by the Federal Housing Finance Agency’s (FHFA) Division of Federal Home Loan Bank Regulation, herein known as the Collateral Da​​ta Survey.​

​Section 1212 of the Housing and Economic Recovery Act of 2008 requires FHFA to submit an annual report to Congress on the collateral pledged to the Federal Home Loan Banks (FHLBanks). The information in this report is based on data collected through an annual survey, known as the Collateral Data Survey, conducted by the Federal Housin​g Finance Agency’s (FHFA) Division of Federal Home Loan Bank Regulation. This report describes the collateral pledged to the FHLBanks and includes an analysis of the collateral by types and by FHLBank district.

Introduction

• This report provides updated information on possible ranges of future financial results of Fannie Mae and Freddie Mac (the "Enterprises") under specified scenarios, using consistent assumptions for both Enterprises. FHFA worked with the Enterprises to develop forward-looking financial projections across three possible house price paths.
• FHFA published updated projections of the Enterprises’ financial performance in October 2011, which can be found in FHFA’s Projections of the Enterprises’ Financial Performance, October 2011.

This quarterly report provides an overview of key aspects of the financial condition of Fannie Mae and Freddie Mac during conservatorship​.

​​This quarterly report provides an overview of key aspects of the financial condition of Fannie Mae and Freddie M​ac during conservatorship.​

​This report provides data on the levels of collateral pledged to the FHLBanks securing advances and other products offered by FHLBanks to their members and housing associates. The report includes data on the adjusted minimal level of collateral pledged to secure advances and the total collateral pledged by members and housing associates.​

Executive Summary

Mortgage Markets and the Enterprises’ Market Presence

Seventy-six percent of all mortgage originations in the first quarter of 2013 were due to refinance volume. Refinance activity continued to be robust as mortgage rates remained low and Home Affordable Refinance Program (HARP) volume remained high driven by enhancements targeting deeply underwater borrowers. Fannie Mae and Freddie Mac accounted for $371 billion or 78 percent of mortgage-backed securities (MBS) issuance in the first quarter of 2013.

New U.S. Monthly House Price Index Estimates 1.1 Percent Price Decline in January.

Note: FHFA publishes monthly and quarterly HPI reports. OFHEO, one of the predecessor agencies to FHFA, was responsible for publishing the HPI prior to the fall of 2008.