The GSEs earned a combined $20.5 billion in theoretical net income under the severely adverse economic scenario of the 2022 stress tests. But those returns would vanish if they had to reserve for deferred tax assets.

The timing of credit-related benefits and losses affected the profits of Fannie and Freddie in the first half of 2022. (Includes data chart.)

The GSEs’ latest SEC filings reveal a combined capital shortfall of $359 billion at the end of the first quarter. But combined earnings were a healthy $8.21 billion for the quarter. (Includes data chart.)

Outstanding Federal Home Loan Bank advances ticked up at the end of 2021, halting a nearly two-year decline. (Includes two data charts.)

Credit-related income boosts profits at Fannie Mae; fair value losses at Freddie Mac keep net income growth in check.

Fewer refinancings mean Fannie Mae’s and Freddie Mac’s amortization incomes from prepayments are in decline. (Includes data chart.)

Spikes in amortization income, guarantee-fee income and credit-related expenses are all closely tied to the government’s intervention in the coronavirus crisis. (Includes data chart.)

If the GSEs’ margins from the first three quarters of 2020 hold, Fannie Mae and Freddie Mac could earn combined profits of $19.9 billion for the year.

The improved financial performance of the GSEs largely reflects the impact of CECL. The provisions for losses that would have been made in 2Q20 under the old accounting standard were already accounted for by CECL, which was adopted in December. (Includes data chart.)

After taking big hits in credit expenses and hedging losses in early 2020, Fannie and Freddie reported more normal net income in the second quarter. (Includes data chart.)