Secondary Market

January was only the fourth time since June 2010 that the portfolio has experienced growth month-over-month.

Lawmakers and activists that have been calling for Fannie Mae, Freddie Mac, and HUD to sell their non-performing mortgage loans to non-profits saw their wish come true on Thursday.

After growing by more than $30 billion during the full year 2015, the portfolio begins the new year with expansion.

Banks have come under fire for their tight lending standards adopted in the wake of the crisis, but the Fed reported that some banks are beginning to lighten up.

Both GSEs reported substantial year-over-year declines in net income for 2015 and FHFA Director Mel Watt said on Thursday that risks facing the FHFA are "certain to escalate" the longer the conservatorships continue.

Fannie Mae and Freddie Mac are required by law to reduce their capital buffer to zero by January 1, 2018. If their losses exceed their capital buffer, they would require another draw from Treasury.

Many have expressed concerns that the GSEs cannot continue their profitability. Freddie Mac announced on Thursday, however, that it was profitable for the fourth consecutive year in 2015.

Fairholme Funds, one of the GSEs' largest investors, is requesting that the government turn over documents that Fairholme says are being unlawfully withheld in regards to the sweep of GSE profits into Treasury.

Through all of its risk transfer programs, Fannie Mae has transferred a portion of the risk on more than half a trillion dollars in single-family mortgages.

Is the government doing enough to reduce the risk of another taxpayer-funded bailout of Fannie Mae and Freddie Mac?