The FHFA submitted its 2013 Report to Congress, which detailed findings from the agency's examination of
Fannie Mae and Freddie Mac. The report found the two GSEs had a record combined net income of 132-
point 7 billion dollars in 2013. The FHFA reported that the credit quality of new single-family guarantees
in 2013 remained high by historical comparisons, with loan-to-value ratios for mortgages in 2013 at 73
percent while the average credit score for purchased money mortgages stood in the 740s.
In 2013 alone, the FHFA completed 448,000 foreclosure alternative actions, including 243,000 loan
modifications. However, Fannie and Freddie remain exposed to credit, counterparty, and operational
risks. The agency commented that they do not believe the Enterprises can remain in conservatorship
permanently, and that the expansion of private sector participation is essential for the long-term health
of the mortgage market. The report said that the goal of executing risk-sharing transactions on 30 billion
dollars of mortgages had been met.
The housing market took an unexpected dip in May, with home sales dropping year-over-year despite a
surge in new listings. A report published by Redfin’s Research Center indicated that home inventory was up
9 percent in May, which is the highest number of new listings to come onto the market in the last 4 years.
At the same time, the actual number of homes sold dropped 10 percent. The drop in actual sales surprised
analysts, who had been predicting a flood of new home purchases once inventory was in greater supply.
You can find more on these stories—and all your latest industry headlines—right here on our site. Thanks
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