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DS News Webcast: Monday 5/9/2014

The government is set to gain an additional 10-point 2 billion dollars from Fannie Mae and Freddie Mac in
June following another profitable quarter. Releasing their earnings reports simultaneously, Fannie and
Freddie reported first-quarter profits of 5-point 3 and 4 billion dollars, respectively—a major step back from
incomes reported last year but still a fair amount for what was a slow period for the housing market. Both
enterprises have reported profits each quarter for more than 2 years straight.

As a result of its profitable quarter, Fannie will be contributing 5-point 7 billion dollars in dividends to the
Treasury in June, bringing its total payment to the government to 126 billion. Per their amended bailout
agreement, dividends from Fannie and Freddie do not offset any draws made. Meanwhile, Freddie
attributes its own quarterly results to nearly 5 billion dollars in legal settlement benefits, offset in part by 2-
point 4 billion dollars in derivative losses as a result of lower long-term interest rates Freddie’s dividend
obligation will come to 4-point 5 billion dollars, bringing its total Treasury payments to 86-point 3 billion.

While the homeownership rate among Americans age 65 and older has remained at a constant 80 percent
for the past decade, the percent of older Americans with outstanding mortgage debt has increased since
the start of the housing crisis, according to the CFPB. About 30 percent of older Americans hold mortgage
debt as of 2011, up 8 percentage points from 2001. About 4-point 4 million Americans are retired and still
paying on their mortgage loans. As of 2011, the median debt among seniors with outstanding mortgages
was 79,000 dollars.

You can find more on these stories—and all your latest industry headlines—right here on our site. Thanks
for joining us. We'll see you again on Monday. Until then, stay with DSNews.com for all of your most
relevant default servicing news.

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