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THE LATEST SECONDARY MARKET ing market liquidity, Fannie claims to have provided $2.7 trillion in liquidity since 2009. The GSE has backed 8.1 mil- lion refinances and 2.2 million home purchases. Fannie has also helped prevent 1.1 million fore- closures and acquired about 2.2 million refinances since 2009. Meanwhile, Freddie wrapped With a stated goal of provid- the quarter with positive net worth, and data from the GSE indicates that Freddie had $1.1 billion in net worth as June came to a close. The new net worth is the result of $2.9 billion in comprehensive income during the second quarter, and about $1.8 billion was paid to Treasury as dividends on 10 percent preferred stock. "[O]ur financial results enabled GSEs Mark Consecutive Quarters F quarter, and the government- sponsored enterprises (GSEs) ended the second quarter on the same note. Fannie reported a net worth of annie Mae and Freddie Mac broke an 11-quarter streak of Treasury draws during the year's opening $2.8 billion with comprehensive income in the second quarter reaching $5.4 billion. This is up from $2.9 billion in the first quarter of this year. As such, the GSE was able to pay its senior preferred stock dividend payment of $2.9 billion to Treasury. 72 | THE M REPORT McFarland, attributed the second- quarter growth to "a confluence of positive factors in the second quarter, including improved home prices, improvement in REO sales execution, and a continued de- cline in our single-family serious delinquency rate." The increase in home prices GSE has paid Treasury $25.6 billion in cash dividends, 22 percent of the $116.1 billion in cumulative draws it has received from Treasury. Fannie's EVP and CFO, Susan As of the second quarter, the was perhaps most impactful. According to McFarland, price with No Treasury Draw Fannie and Freddie display greater stability, requesting no Treasury funding after for a second consecutive quarter. appreciation "resulted in credit- related income for the quarter." However, McFarland also noted that despite outside factors such as pricing, "we manage our business in a manner that positions Fannie to provide value to taxpayers." Currently backing 46 percent of new single-family mortgage-relat- ed securities, Fannie continues to dominate the secondary market as the largest issuer of mortgage- backed securities. The GSE's share of 46 percent, lion in the second quarter is a jump from $577 million recorded in the first quarter. The increase "primarily reflects a decline in the provision for credit losses due to positive trends in the housing market," the GSE noted in an of- ficial statement to the press. Additionally, Freddie reported us to avoid an additional draw from the U.S. Treasury, despite paying a $1.8 billion cash divi- dend to the nation's taxpayers," stated Donald H. Layton, CEO of Freddie. Freddie's net income of $3 bil- that since 2009, it has pro- vided $1.5 trillion in liquidity by purchasing and issuing mort- gage loans, and the GSE either purchased or issued $215 billion in loans and mortgage-related securi- ties in the first half of this year. Also since 2009, Freddie has however, is down from the 51 per- cent market share reported at the end of the first quarter of this year. tion of 700,000 foreclosures since 2009, about 81,000 so far this year. The GSE also reports that the serious delinquency rate among its single-family book of business stood around 3.45 percent to end the quarter. assisted in providing refinances to about 5.2 million families, helping them save an average of $2,500 per year, and the GSE has reached more than 680,000 families through the government's Home Affordable Refinance Program (HARP). Freddie recorded the preven- SECONDARY MARKET ANALYTICS SERVICING ORIGINATION