Though Fannie
Mae and Freddie Mac, the two major U.S. mortgage-finance companies,
had seen improvements in earnings and foreclosure prevention, they
are still in face of mixed challenges, the U.S. Federal Housing
Finance Agency (FHFA) said on Wednesday.
Both Fannie Mae and Freddie Mac guaranteed around $100 billion per month in new mortgages in 2011, accounting for three
of every four mortgages originated last year, the FHFA said in its
fourth annual Report to the U.S Congress, detailing the agency's
examinations of Fannie Mae, Freddie Mac and the 12 Federal Home Loan
Banks (FHLBanks).
Since the first quarter of conservatorship in September 2008,
more than 2.1 million foreclosures had been prevented by Fannie Mae
and Freddie Mac loans, said the regulator of these two companies.
Despite the improvements, Fannie Mae and Freddie Mac are still
facing challenges including ongoing stress in housing markets,
difficult economic environment, and uncertain future, the report
noted.
As of year-end 2011, the two companies had sought aid of $187.5
billion in total from the U.S. government, and they were
also considered by the FHFA as "critical supervisory concerns" for
2011.
Continuing credit losses at Fannie Mae and Freddie Mac came
primarily from loans originated during the years 2005 to 2007, the
report said.
With respect to FHLBanks in 2011, their financial condition and
performance remained fairly stable, though several banks continued
to be negatively affected by their exposure to private-label
mortgage-backed securities, the FHFA added.
