FHFA Projects Potential Draws for Fannie and Freddie

Investor Update: On October 26, the Federal Housing Finance Agency (FHFA) released FHFA Updates Projections of Potential Draws for Fannie Mae and Freddie Mac

FHFA Updates Projections of Potential Draws for Fannie Mae
and Freddie Mac

The Federal Housing Finance Agency (FHFA) today released updated projections of the financial performance of Fannie Mae and Freddie Mac, including potential draws under the Senior Preferred Stock Purchase Agreements (PSPAs) with the U.S. Department of the Treasury. These updated projections show cumulative
Treasury draws that are reduced and more stable compared to previous projections. The key drivers of those results include an overall reduction in actual and projected credit-related expenses and changes in the dividend structure contained in the PSPAs, which eliminates the need to borrow from Treasury to pay dividends.

FHFA first released financial projections in October 2010, and has provided updates of those projections on an annual basis. Through the FHFA Conservator’s Report, FHFA reports actual performance versus projections on a quarterly basis.

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the
12 Federal Home Loan Banks. These government-sponsored enterprises provide
more than $5.7 trillion in funding for the U.S. mortgage markets and financial institutions.

To view the release in its entirety, please click FHFA Updates.

To read a related housingwire.com article, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees  and a handful of contractors performing services in the Midwest, to a national company with more than 1,600 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.

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