Due to COVID-related forbearances, Freddie faced a $2.2 billion increase in its provisions for losses in 2020. However, that expense was more than offset by an across the board increase in revenues.
Fannie Mae, Freddie Mac and Ginnie Mae reported improvement in loan-performance rates in November. But early-payment defaults were up. (Includes data chart.)
The FHFA’s capital requirements include relatively harsh treatment of credit-risk transfer transactions from Fannie and Freddie but that view could change under the Biden administration.
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