Fannie, Freddie Profits See Big 2014 Drop

Fannie Mae’s and Freddie Mac’s combined annual income dropped to $21.9 billion in 2014 from $132.7 billion in 2013, the Federal Housing Finance Agency reported today.

Excluding a one-time release of deferred tax asset valuation allowances that accounted for most of the GSEs’ 2013 profits, 2014 income was still lower — driven by the decrease in swap rates, slower growth in home prices, and a declining pace of legal settlements.

Meanwhile, the Federal Home Loan Banks collectively earned $2.3 billion in 2014, down from $2.5 billion in 2013. Aggregate advances — which make up 62.5 percent of FHLB assets — rose 14.5 percent in 2014 to $570.7 billion.​