High interest rates depress new loan acquisitions at the mortgage giant, but also limit prepayments, which keeps portfolio earnings high.

Despite remarkably stable revenues and meaningful improvements in mortgage rates, below-the-line factors at Fannie and Freddie took a significant bite out of profits in 2025. (Includes data table.)

The firm urged the Financial Accounting Standards Board to update fair value accounting standards for MSRs so they include recapture metrics.

The FHLBanks’ decision to voluntarily increase contributions to affordable housing and community development from 10% of net income to 15% has taken a toll on profits. (Includes three data tables.)

Most of the decline was in held-to-maturity accounts, but that may have been the result of an accounting reclassification.

Remarkably steady net revenues at the GSEs mean fluctuations in profits are mostly due to below-the-line expenses. (Includes data table.)

Researchers at the Office of Financial Research have developed new ways to gauge the risks banks face from potential losses on their securities holdings. The researchers caution that a number of banks showed signs of stress similar to the banks that failed in early 2023.

Banks and thrifts handled slightly less servicing for others as of the end of June. Still, a metric tracking the fair value of MSRs at banks increased during the second quarter. (Includes data chart.)

Economists use risk-based models of future GSE cash flows to calculate costs of the government’s backing of catastrophic losses.

Unexplained fair market gains bolster Treasury’s stake in the GSEs by more than 100%.