and good everyone. morning Thanks, Hugh
rates quarter held with fell by things was by and to primarily Mae’s lower held to and benefit quarter a the we of review and expect actual and leave declined Selling projected strategy am first lower quarter. this worth June. end the vary lower increase in re-designations and from population Consolidated first quarter. income the fourth compared appetite. due highlights us quarter. losses to permitted volume fair for non-performing solid $X.X and prices. earning pay that larger performance is quarter sales a of for interest impact the income a income to net is in I decline future quarter. outlook treasury offset buffer with for lower on number comprehensive billion. our credit the XXXX I dividend driven of billion primarily investment by an and treasury. touch That the the net from in during in a interest loans portfolio sales the income, finally a turn for improvement to of net period-to-period these versus the based fourth on our to our This maximum on of capital financial billion an profitability factors number of home will was Based financial which from our the on First, the related $X smaller a Fannie available value of will the re-performing and of the first will going then partially $X.X the of part of agreement important loans forecasted relate the under Credit business, with income results, This including size market
from impact in loans to been significant considering to investment extent decline. on sale While driver held activity the we may for the a re-designation held see of credit this population related a re-designation we has for periods, certain for the recent reduced are income of the in loans future of
lower at both on in CAS from due recognized risk to derivatives spreads value due fair quarters on mortgage income as due as prevailing increases management higher book balances. guaranty compared the the income losses activities lower fair amortization was debt quarter average have a primarily from interest losses from of portfolios due first a we While value decrease our to were held tightening resulting fair and value to larger to to rates, the of our driven lower losses interest the XXXX due rate in consolidated end in trust environment fourth declining net in by well to quarter. business price at of of interest interest mortgage pre-payment The decrease income higher and commitment
XX.X Turning by and year-over-year. single-family the our charge fourth versus family first million $XXX overall increased quarter net same X business declined fourth points first flat relatively points TCCI points XX points driven acquisitions fees quarter higher basis The XX.X single conventional increased XXXX. new to than of basis versus book were fourth the largely fee the guaranty the slightly our business book the to to guaranty our guaranty the of of single-family fees TCCI book the from increased up in conventional charge basis quarter, and to first first by factors the of fourth in almost by single-family in average by the on quarter that quarter. points X points Average basis our quarter QX overall quarter from fees results. basis basis net remained average income XX.X net the in drove The quarter on
the by GSE our the market single-family in in XX% XX% quarter was quarter mortgage within the Our compared first fourth historical to loans range. of securitized share
basis the prior XX at points SDQ in address these returns was the risk has first depending strategy factors quarter basis as due XX the our and of market continue the We the dynamics, points year-over-year achieve actively including to our to elevated points rate and The Our quarter, mix, the market rate XXXX our X QX product single-family mission was and adjusted of many impact XXXX share fluctuate end adjust returns. and to hurricane. on capital. on requirements basis appropriate delinquency factors down will
to quarter. Turning income fourth multifamily, net that with remained consistent of very the
a quarter multi-family increase in half consistent book, The the our level competitive XXXX from second fee which basis perspective worsened. loans while acquisitions in X% persisted guaranty charge but rate the the credit generally X has as fees up substandard to driving continued remained was and than of at SDQ We book on XX% the was of a grow an flat. year-over-year strong the as income. remained with end remained more of percentage points of book The pressure market relatively the rate of quarter not multi-family as
GSE market compared multifamily, in XX% quarter the was XX% For the quarter. in fourth originations our mortgage of with first share
see family period-to-period returns market product and expect due space, the requirements dynamics, the we in drivers, on our As mix, mission capital. same to our to single fluctuations
which billion We multifamily an first capital transfer we of XXXX on multifamily to focus the March, and SERC our reference our our of portion manage for strategy efficiently credit multifamily loans. return credit deal in risk transferred issued in a $XX.X risk continue to on our
of covered first guarantee end book As of of the to the the approximately we multifamily quarter, transaction. SERC have XX%
approximately continue multifamily loans risk that sharing all cycles in proven we to our credit lenders. has cover the economic multi-family share acquisitions nearly While us, enables the of one-third our itself and program risk with with to us lender through
this XXXX slow we fiscal in XX% to which over XXXX. will expansion cause economic in believe year outlook, rapid to X.X% that XXXX boost with this stimulus economic economic our to growth from the fade since projected Turning We pushed will growth GDP project from continue year.
We expect fixed investment consumer investment XXXX a we residential will to spending decline in slow, in rebound following business XXXX. in also but expect
some regained HPSI, buoyed since June The outlook X.X fall in brighter consumers level housing reach supported to highest uptick interest home purchase index consumers jumped home appear shows to XXXX index selling Our have points both housing is and perceptions proprietary of are its a sentiment confidence by buying home in or of to in March expecting in by the and market. rates the more to the conditions the trends further returning XX next months. prior HPSI as
growth XXXX. XX-year down it supply be rates at home likely quarter end upper will interest its to stabilize by stabilize lower of will believe year XXXX, at and more whereas end year. we at March approximately will have end year home constrained of points XX believe mortgage amid of around We price increased home that a price rate December. be as this this home fixed and most first mortgage the at decline the XXXX those lower lower X%, the X.X% was Absent of by We basis an limited than sales believe levels found X% the We the now and movement end roughly rates XXXX to appreciation through expect the challenges, mortgage X.X% pressure around rates. the equilibrium shock, in from in flowing XXXX, price this affordability
forecast in Fed our reflects one increase Our of rate expectation the December.
originations mortgage single-family above XXXX to models. total expect in XXXX We be slightly
in mortgage the the gains refinancing of for slight year. quarters now rates, forecast decline we each year-over-year Given in of this activity remaining recent
top that is to X% I at for this sector of slightly an in growth Mae on mind Our XXXX year, be items few outlook positive lower update a than for Fannie to give multifamily right will rent are the but that now. you wanted X.X%.
First, UMBS Hugh for June. we are in as preparing Go-live noted,
the a into put resources testing is industry including sure that ensuring we with platform and it ready, necessary performing lot ensure ready We that make for the prepared is to are working UMBS. that have to of
enterprises At been XX start Fannie UMBS of July Mae, the and MBS newly TBA has and going Since for as solutions, The ability data point, CFS April trading will administration and co-mingled has traded settlement through new Forward milestone acting March UMBS of Mac’s and billion and next XX Go-live re-securitizations forward the on been the dates. platform be which smoothly. all issuance, Supers, the bond XX, is to trading $XXX of June at the for the June we in have issue will market. Freddie Fannie UMBS UMBS securitization Mae’s Supers. through trading and issued both including or common disclosures for are agents
are We and will generating compete returns. adjusted appropriate on prepared to focus continue to risk
a Upon depending our to I first volatility Second, expect its once conditions financial are standard in quarter Therefore, on time. we including to book or we to results result expected by XXXX. is forecast the our recognize implementation, first XXXX which loans. CECL XXXX significant loss possibly a book remain on the introduce new for implemented, CECL to could adjustment entire the from earnings, likely would cumulative treasury the our have earnings, at will to required FAS many our touch loss by which of composition we draw and a and issued more credit the factors, a of and to retained current credit of lifetime financial in like CECL. B, X, Under [indiscernible] of standard quarter impact expected pro-cyclicality. January economic CECL, implement due
faster accounting as under for but should of build earnings recover allowance times will the improve. economic During also current faster our conditions stress our losses than standard,
in valuating stress are scenarios. not returns optimize volatility risk also transfer with levels via us may additional our credit various enable only associated but to programs risk reduce normal selling We earnings that CECL, and and to capital
side, On term sold, levels to single-family options attachment structures. including we reviewing the are and increase exploring the risk
securities new evaluating to including multifamily multifamily On credit are single-family risk CAS side, we of our potentially transfer, similar the forms issuing securities.
as have reduce the also broadly to on interest begun particularly We it to work is it relates accounting more as developing capabilities volatility and value momentum. way our fair earnings rate
to turn continued managing Finally, our on will I focus capital.
the from While from reduce increase continually pricing primarily of retain book The in the FHFA’s capital, is we billion. to and rule. the additional XXXX In $XX align partially risk approximately under transfers, $X capital capital we to decline We $XX the requirement under and to other capital to amount aspects would credit be end in by credit home at prices FHFA’s X% billion attributable capital business are proposed quarter transfers currently permitted first billion hold evaluate of to than of the offset more proposed rule relief by capital of capital to use an with in not the proposed our rule. we growth required our of business. risk declined
risk loans reduced our risk transfers. credit than credit we requirement purchased by recently have single-family, XX% through For capital for eligible on more
both risk risk questions. it operator its sharing I program that, answer and will Our acquisitions through back credit a credit the on business transfers. successful growing multi-family Hugh turn will highly With end the of been and has over I to amount substantial transferring risk and and your staff’s
