Fannie, Freddie both pass 2022 stress test despite misalignment on risk rating
Fannie, Freddie both pass 2022 stress test despite misalignment on risk rating
Abstract
Fannie Mae registered a total credit loss of $10.8 billion compared to $14.2 billion in 2021. Freddie Mac was slightly more adversely impacted, with credit losses of $6.3 billion in the current testing cycle. The FHFA issued a bevy of guidance to both enterprises. It directed the groups to use aligned regional house price paths to project potential loan losses and set similar capital requirements. In 2019, the FhFA brokered a deal for the GSE and Fannie and Freddie. The enterprises to pause dividend payments.
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