From housing economist Tom Lawler:
Yesterday Fannie Mae and Freddie Mac both released their quarterly financial results for the second quarter of 2014. On the earnings front Fannie reported that both GAAP net income and comprehensive income last quarter were $3.7 billion, meaning that Fannie expects to pay Treasury $3.7 billion in dividends in September. That payment would bring total dividends paid to Treasury of $130.5 billion, compared to $116.1 billion in cumulative cash draws from Treasury since 2008. Freddie Mac reported GAAP net income of $1.4 billion and comprehensive income of $1.9 billion, meaning that Freddie expects to pay Treasury $1.9 billion in dividends in September. That payment would bring total dividends paid to Treasury of $88.2 billion, compared to $71.3 billion of cumulative cash draws from Treasury since 2008.
Here are some summary delinquency rate stats for the conventional SF mortgage books of both companies.
| Payment Status, Fannie Conventional SF Mortgage Book | |||
|---|---|---|---|
| 6/30/2014 | 3/31/2014 | 6/30/2013 | |
| 30 to 59 days delinquent | 1.46% | 1.40% | 1.85% |
| 60 to 89 days delinquent | 0.42% | 0.40% | 0.51% |
| seriously delinquent | 2.05% | 2.19% | 2.77% |
| Payment Status, Freddie Conventional SF Mortgage Book | |||
|---|---|---|---|
| 6/30/2014 | 3/31/2014 | 6/30/2013 | |
| One month past due | 1.53% | 1.40% | 1.80% |
| Two month’s past due | 0.48% | 0.47% | 0.55% |
| Seriously delinquent | 2.05% | 2.20% | 2.79% |
Here are some summary stats for SF REO activity at both companies.
| Freddie SF REO Activity | Fannie SF REO Activity | |||||
|---|---|---|---|---|---|---|
| Acquisitions | Dispositions | Inventory | Acquisitions | Dispositions | Inventory | |
| Q4/10 | 23,771 | 26,589 | 72,079 | 45,962 | 50,260 | 162,489 |
| Q1/11 | 24,707 | 31,627 | 65,159 | 53,549 | 62,814 | 153,224 |
| Q2/11 | 24,788 | 29,348 | 60,599 | 53,697 | 71,202 | 135,719 |
| Q3/11 | 24,378 | 25,381 | 59,596 | 45,194 | 58,297 | 122,616 |
| Q4/11 | 24,758 | 23,819 | 60,535 | 47,256 | 51,344 | 118,528 |
| Q1/12 | 23,805 | 25,033 | 59,307 | 47,700 | 52,071 | 114,157 |
| Q2/12 | 20,033 | 26,069 | 53,271 | 43,783 | 48,674 | 109,266 |
| Q3/12 | 20,302 | 22,660 | 50,913 | 41,884 | 43,925 | 107,225 |
| Q4/12 | 18,672 | 20,514 | 49,071 | 41,112 | 42,671 | 105,666 |
| Q1/13 | 17,881 | 18,984 | 47,968 | 38,717 | 42,934 | 101,449 |
| Q2/13 | 16,418 | 19,763 | 44,623 | 36,106 | 40,635 | 96,920 |
| Q3/13 | 19,441 | 16,945 | 47,119 | 37,353 | 33,332 | 100,941 |
| Q4/13 | 16,941 | 16,753 | 47,307 | 32,208 | 29,920 | 103,229 |
| Q1/14 | 14,384 | 18,126 | 43,565 | 31,896 | 32,727 | 102,398 |
| Q2/14 | 10,592 | 18,023 | 36,134 | 31,678 | 37,280 | 96,796 |
Fannie Mae reported that for foreclosures completed in the first six months of 2014, the average number of days from the borrowers’ last paid installment on their mortgage to when the related properties were added to Fannie’s REO inventory was 918 – or slightly over 2 ½ years. Average days to foreclosure were especially long in New York (1,371), Florida (1,332), and New Jersey (1,307).
Freddie Mac reported that for foreclosures completed in the first six months of 2014, the average number of days from the borrowers’ last scheduled payment to when the related properties were added to Freddie’s REO inventory was 875 days. Average days to foreclosure ranged from 403 in Missouri to 1,337 in New Jersey.
Fannie Mae’s average charged guaranty fee on SF mortgages acquisitions last quarter was 62.6 bp, little changed from 63.0 bp in the previous quarter but up considerably from 25.7 bp average in 2010. Pursuant to the Temporary Payroll Tax Cut Continuation Act of 2011 (the “TCCA”), on April 1, 2012 Fannie increased Gfees by 10 bp, and the incremental revenue from this 10 bp is remitted to Treasury.
Freddie Mac’s average charged guaranty fee on SF mortgage acquisitions last quarter was 58 bp, up from 56 bp in the previous quarter and well above the 25 bp average in 2010. Pursuant to the TCCA, on April 1, 2012 Freddie increased Gfees by 10 bp, and the incremental revenue from this 10 bp is remitted to Treasury.
Fannie Mae’s “national” home price index, a unit-weighted repeat sales index based on purchase transactions in Fannie-Freddie acquisitions and public deed data, increased by 5.9% from the second quarter of 2013 to the second quarter of 2014. In 2013 this HPI increased by 8.3% (Q4/Q4).
Freddie Mac’s “national” home price index, a value-weighted repeat transactions index (using weights based on each state’s share of Freddie’s SF book) based on repeat transactions on residential properties acquired by Freddie or Fannie (purchase transactions and some refinance transactions), increased by 6.1% from June 2013 to June 2014. In 2013 this HPI increased by 9.3%.