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DS News Webcast:Tuesday 5/13/2014

The Federal Housing Finance Agency released its Quarterly Performance Report of Fannie Mae and
Freddie Mac, and overall, the performance report was good, noting increases in Fannie and Freddie’s
earnings for the fourth quarter of 2013. Together, the two GSEs reported a combined full-year earnings
of 132-point 7 billion dollars. The Federal Home Loan Bank System had positive earnings as well, with 2-
point 5 billion dollars of earnings in 2013. The yearly earnings were down slightly from the 2-point 6 billion
reported in 2012.

The FHFA found that seriously delinquent loans continued to decline as government assistance programs
helped afflicted borrowers. In the fourth quarter of 2013, seriously delinquent loans declined 7 percent to
approximately 674,000 loans. Yearly, seriously delinquent loans declined by 27 percent. Delinquency rates
for loans originated after 2009 remain at or below one percent. However, seriously delinquent rates for
loans originated between 2005 and 2008 remain high, and account for roughly 15 percent of single-family
portfolios.

The American Enterprise Institute put out a flash release of its National Mortgage Risk Index, a measure
of the likelihood of purchase loan defaults under stressful economic conditions. According to the group,
the index climbed to a series high last month to 11-point 8, indicating nearly 12 percent of loans would be
at risk of default in the event of another downturn. The spike was credited to the FHA, which had higher
market share and was increasing loan level risk. The FHA’s home purchase volume jumped 36 percent in
March.

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 Wednesday. Until then, stay with DSNews.com for all of your most
relevant default servicing news.

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