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Th e M Rep o RT | 61 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t Comprehensive income nearly tripled in Q1 from the previ- ous quarter, jumping from $251 million in Q 4 up to $746 million in Q1. According to Freddie, the increases in net income and com- prehensive income were primarily driven by the drop in derivative losses amid declining interest rates and a less-flattening yield curve in Q1. Also in Q1, certain seriously delinquent single-family mortgage loans were reclassified from held- for-investment to held-for-sale. "Our strong business momen- tum from last year carried into the first quarter, enabling us to again produce earnings despite a continued declining rate en- vironment, so we can return further dividends to taxpayers," said Donald H. Layton, CEO of Freddie Mac. "We continue to focus on serving our growing customer base better to support the U.S. economy, innovating to become a more competitive company, and reducing risk to the taxpayer. We are also work- ing under FHFA leadership to make the industry stronger, with a growing focus on responsibly increasing access to affordable housing for the nation's borrow- ers and renters." According to Freddie Mac, Q1 results were driven by net interest income, which totaled $3.6 billion for the quarter. Guarantee fees accounted for 40 percent of the net interest income during the quarter. "The company's use of de- rivatives reduces exposure to interest-rate risk on an economic basis (duration gap continues to average zero months)," Freddie said in the announcement. "However, this can result in significant accounting volatility during any given period." Other highlights of Freddie Mac's Q1 2015 Financial Report include helping 14.6 million families buy, rent, or keep their homes since 2009; $2.6 trillion in liquidity provided to the mortgage market during that period; 11.3 million single-family homes; the introduction of the Home Possible Advantage program (which al- lows single-family homes to be purchased with a down payment as low as 3 percent); and providing foreclosure alternatives to approxi- mately 1.1 delinquent borrowers. Freddie has returned $92.6 bil- lion to taxpayers, including the June 2015 Dividend Obligation of $746 million; both Freddie Mac and its fellow GSE, Fannie Mae, are required by a 2012 amendment to the terms of their 2008 bailout agreement to continue paying Treasury dividends based on their net worth, even after they've re- paid taxpayers in full. The total of $92.6 billion returned to taxpayers is approximately $21.3 billion more than Freddie Mac needed in the 2008 bailout to continue opera- tions ($71.3 billion). Fannie Mae and Freddie Mac announced that their conserva- tor, the Federal Housing Finance Agency, had authorized them to review the salaries of their respective CEOs, Donald Layton for Freddie Mac and Timothy Mayopoulos for Fannie Mae, ac- cording to a report from Nasdaq. Both CEOs made $600,000 each without bonuses in 2014. The GSEs are reviewing their top executives' pay largely due to concerns that the GSEs will not be able to stay competitive be- cause the salaries of their CEOs are less than those of some lower-ranked executives. SECONDARY MARKET THE LATEST