Legal Seminar, Chicago, IL

Both GSEs continue to contract their retained portfolios. Since April 2018, FannieMae has contracted by 23.6 percent and Freddie Mac by 9.9 percent. They are shrinking their less-liquid assets (mortgage loans and non- agencyMBS) faster than they are shrinking their entire portfolio. The Fannie Mae and Freddie Mac portfolios are now both well below the $250 billion maximumportfolio size; they were required to reach this terminal level by year end 2018. Fannie met the target in 2017, Freddie met the target in February 2018. GSE PORTFOLIOWIND-DOWN GSES UNDER CONSERVATORSHIP

Fannie Mae Mortgage-Related Investment Portfolio Composition

FNMAMBS in portfolio Non-FNMA agency MBS Non-agency MBS Mortgage loans

Current size: $174.5 billion 2018 cap: $250 billion

Shrinkage year-over-year: 23.6 percent Shrinkage in less-liquid assets year-over- year: 28.7 percent

($ billions)

900

800

700

600

500

400

300

200

100

0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

April 2019

Sources: FannieMae and Urban Institute.

Freddie Mac Mortgage-Related Investment Portfolio Composition

FHLMCMBS in portfolio

Non-FHLMC agency MBS

Non-agency MBS

Mortgage loans

Current size: $216.5 billion 2018 cap: $250 billion

($ billions)

0 100 200 300 400 500 600 700 800 900 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Shrinkage year-over-year: 9.9 percent Shrinkage in less-liquid assets year-over- year: 15.9 percent

April 2019

Sources : Freddie Mac and Urban Institute.

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