Fannie Mae & Freddie Mac: Accounted for Majority of Total Residential
Mortgage-Backed Securities (RMBS) Issuance Since 1990s
Fannie Mae / Freddie Mac Residential Mortgage-Backed Securities Issuance and as % of Total Market Volume, 1998-2010
ANI mo cnn ss commun x rem 2 I 2 A RB AB IRS SUT SEGA THRE YH 7 URN 80%
1800 N 72% < 0 = mag I on ne a 64% £ roby , a £ iS 2 3 4,400 ----------------+ +222 22-2222 Af eee eee eee eee - 56% S$ . 2 & 1,200 ------------ +2222 ee ee eee eee ee eee eee - 48% 5 5 = OD 1.000 f .. 49% @ & 1,000 40% m 3 = BE BOO, = = enn w= mn en we ns ene en a nn 32% 8 =) ° by Ee oe - 24% s x : oe oo oe lee | 16% 2 =
ail if fall TH} 7
oa i i 1 0% 1988 1992 1996 2000 “a Fannie Mae RMBS Mai Freddie Mac RMBS ——Fannie + Freddie RMBS as % Total RMBS
Sources: 1988-2006 data from Calculated Risk; Fannie Mae / Freddie Mac data from FHFA Annual Report to the
KP Congress 2009, 2009 / 2010 data per EMBS and Hybrid Weekly. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 197
Fannie Mae & Freddie Mac:
Latest Estimated Ultimate Cost to Taxpayers Varies*
Base-Case Estimated Ultimate Source Comments / Assumptions
Net Loss** Net accrued loss to be borne by taxpayers, including net cash infusions (with implied default rate of ~5- 10%) and risk premiums associated with federal
Congressional government’s implicit guarantee on GSEs’ credit. $389 Billion Budget Office Bulk of the net loss ($291B) occurred prior to and (CBO) during F2009.
On a cash basis, CBO’s estimate would have been in line with White House OMB’s estimate.
Net cash outlay to be borne by Treasury Dept. (and ultimately taxpayers), including Treasury Dept.’s cash
Wine: HeUSS outlays to purchase Fannie Mae & Freddie Mac
$160 Billion pater and Preferred stock (with implied default rate of ~5-10%), Budget (OMB) minus cash received from dividends. Bulk of the net cash outlay ($112B) occurred prior to and during F2009. Note: *Latest estimated cost to taxpayers varies and continues to rise. **By F2019E. Source: CBO, OMB. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 198
HOUSE_OVERSIGHT_020940