Fannie and Freddie reported lower combined comprehensive income in the second quarter compared with a year ago. While net interest income and non-interest income declined, expenses shot up.

Both GSEs posted their highest monthly volume of single-family MBS issuance since January 2017. Purchase-mortgage and refinance business rose significantly.

A decade of incremental reform has set the stage for Fannie Mae and Freddie Mac to exit conservatorship, according to Don Layton.