Sagging home prices forced the GSEs to post a combined $4.34 billion provision for credit losses in the third quarter, undercutting retained earnings. (Includes data chart.)
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 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.)
Profits of $34.29 billion in 2021 will suffer in 2022 as both amortization income from refinances and benefits for credit losses ebb. (Includes data chart.)
The Federal Home Loan Banks saw their interest-earning assets continue to decline in the third quarter, although somewhat less rapidly than earlier in the year. (Includes three data charts.)