WASHINGTON (6/14/12)—Instability in housing markets and the economy in general continued to challenge government-sponsored enterprises Fannie Mae and Freddie Mac in 2011, but all Federal Home Loan Banks (FHLBanks) reported positive annual earnings in that same year, the Federal Housing Finance Agency (FHFA) said in an annual report sent to the U.S. Congress Wednesday.
The FHFA annual report, which is its fourth on the GSEs, noted that Fannie and Freddie were "critical supervisory concerns" for the FHFA in 2011. It said the continued losses at those GSEs were mostly tied to mortgage loans that were originated between 2005 and 2007.
Fannie and Freddie guaranteed around $100 billion in new mortgages per month in 2011, accounting for three of every four mortgages that were originated during that year, the FHFA added.
While FHLBank performance and financial condition remained stable, they "continued to be negatively affected by their exposure to private-label mortgage-backed securities," the report added. FHLBanks ended 2011 with $766.4 billion in total assets, a decline from the $878.3 billion in assets reported in 2010, the FHFA said.
For the full FHFA report, use the resource link.