everyone. Thanks, good morning, and Hugh,
year I review the for our turn to First, financial and our will the highlights quarter outlook. then and
business. I of our number things a Finally, will touch impact that on
fourth quarter, the approximately a $X.X quarter-over-quarter $XXX of was our million. increase billion, comprehensive In income
For to comprehensive our income $XX billion billion XXXX, $XX.X XXXX. was compared in
worth we net which December, $XX.X quarter, adoption estimated Our net reached at At less worth retained end our will the earnings, our of the by adjustment billion retained first increase have of amount our CECL. end QX of $X.X an earnings billion capital. with of the the associated as
income continued profitability X%, fourth versus and gains net activity higher book revenues the refinance Net in was quarter mortgage lower due single-family third in in higher as investment primarily in fair gains, or value guaranteed credit-related increase million business, revenues, $XXX income. low approximately to The by higher resulted our rates the of fourth partially offset amortization primarily the driven by quarter from by driven activity. prepayment by mortgage rose higher
the in these Fair fourth quarter increased in due third individually impaired fourth third derivatives cash from rising long-term by swap benefit estimate credit-related partially management quarter. the in in a the Investment risk rates our million to fair the value we included of in sold quarter the number loans. enhancements due increases use as value model flows loans losses the compared gains the offset to to approximately primarily Lower income to single-family by the driven increases for fourth were the in reperforming of increase an to gains $XXX quarter during period.
the shift declined XXXX income in a most rates year. comprehensive a to from year, result mainly interest gains value decreasing losses fair the of of to XXXX as in during due For
Single-family nearly our income quarter XXXX driven same $XXX third, $X.X net while drove the year by the declining business, in the primarily versus by year by full versus full that factors increased the our fourth XXXX, billion for million results. For overall
market to Our XX% fourth third by mortgage quarter. compared was share in of loans the securitized quarter the GSEs single-family in the XX%
dynamics, see returns. requirements fluctuations market to appropriate due mission to mix, our We our in product focus and market on continue risk-adjusted generating expect to share
acquisitions to volumes. to as rates continue low were billion third, mortgage similar the quarter, fourth Single-family large the refinance nearly $XXX in drive
to XXXX with activity proportion to acquisitions of business at The by greater $XX to book while acquisitions year-over-year, XXXX. to from debt-to-income acquisitions improve in of ratios continue over XX strong our the XX%, Our declined due further XX% with XX% billion from our basis proportion below single-family and of both to due underwriting from the of profile performance. and we’ve X% delinquency at rate the system. declined of updates serious end XX XXXX credit average to guaranty grew and the The points to end in XXXX, refinance FICOs single-family DU, single-family made XX% in basis the X.XX% of proprietary book to in fundamentals, XXXX year declined housing acquisition conventional points volumes
capital over the XX% of proportion represent proportion declined the DU in mortgages, acquisitions money X.XX% below ratios requirement from best our changes, impact XXXX with The our XX% and declined XXXX, of credit X% XXXX. capital which from the XX%, from acquisition reduced in debt-to-income the quarter quality XXXX. purchase conservator has the FHFA’s acquisitions in for with For the XX% to FICOs in XXXX improvement approximately to for capital by rate continued X% acquisitions since under fourth in new of framework
event stressed or or extending advantage the fourth strong capital of market environment, substantial quarter, of further reduce took made Connecticut a deal while In risk to the the a investors conditions loss transfer that position. first the the greater reducing at improvements CAS hedge we that loan credit the we past, terms is and reducing attachment deal, can the same Securities deals to evaluate transfer discussed to to requirement. use quarter, requirement these CRT of a us CRT to we tool risk portion innovations against third FHFA’s Avenue in losses capital we and In time, in points capital and product private our of by a the of first the more downturn or and doing enabled framework. our in season our As transfer credit the the our we’ll have conservator issued under provide future. These a portion
single-family Single-family capital on framework insurance transactions by our more conservatorship XX%. have XXXX reduced CRT and for risk credit requirement than XXXX through loan acquisitions mortgage covered our
shift fees rates. due $XX approximately million lower by net losses, quarter, their to our primarily both value maintenance the multifamily, income a by interest rising yield driven For decreased versus third and to
fair the book quarter. company periods fair experienced fee This While income guarantee partially value the in incurred the of the Multifamily rates commitment value fourth on was by the in rising result grow. as commitments the interest a losses offset segment higher as fourth continued gains during quarter, to
revenue at the guarantee year-over-year. The approximately XX by over book net quarter yield through the an due year, multifamily remained average in much income declining the driven increase X size as result due a The in the quarters, remains The on book. quarter million, higher the well maintenance perspective. prepayment average fee the at stabilized basis income to fourth of by in of for acquisitions. year, strong up due For mainly low of and average was delinquency the as from XXXX, $XXX XX% guarantee increase was volumes largely book our X% as an After rate points guarantee declining increased fees X.X%. the rates by several substandard a while to quarter rate fourth at larger in the points higher fees basis credit of just book to multifamily serious end
DSC mortgage Our XXXX slightly to acquisitions of XX% multifamily in share from XX% XXXX. increased
XX% framework. new Multifamily capacity We cap quarter the of $XX hover new given in the under The in billion cap billion XXXX. billion QX leaving $XX fourth volume first was the operated volume end was rules. will quarter under we these cap FHFA’s the around through volume likely volume that $XXX
DUS by history our In Connecticut multifamily we grew levels volume from our our highest first program. multifamily activities transfer year, in October, billion, volume expanded the deal. annual risk Securities the back-end of reach Avenue X% the XXXX $XX with acquisition For credit multifamily to
are. that the our on In delegated we way of credit XXXX, are be underwriting risk deals credit deals to supplement Multifamily risk credit these CAS the same risk transfer for risk amount and These through business acquisitions the service sharing in insurance expect multifamily’s programmatic transactions we already transfer as program.
our than acquisitions own. All of transfer other more program us to CRT risk allow on including capital XXXX framework multifamily activities reduced competitive relief its execution credit enhancements, risk by and on than for conservatorship and XX%. credit DUS, capital DUS provide multifamily have our our greater credit The
conservatorship FHFA’s from under requirements the capital framework capital $XX third. $XX was down Our the billion in quarter, billion approximately fourth in
Single-family increased our Continued for risk-based high and requirement acquisition Multifamily the businesses. volumes capital
increase transaction, which requirements reduced this deal larger However, CAS risk a transfer $X aforementioned than seasoned credit over first was including and our offset single-family capital from well benefit CAS capital more the by first billion. by the multifamily
Additionally, to continued our disposition. requirement due portfolio the for legacy declined retained capital asset
which and safety prospectively. system. an finance capital to We of new Mae rule, shaping awaiting calibrated the be are our will business key and FHFA’s Fannie appropriately in the soundness key is capital housing rule believe We the
As we as are changes company. you return-oriented a us that on mentioned, focused making position
action for post a in as prepare a to and/or are that as exit conservatorship to well ready to facilitate are conservatorship we We environment. operate taking ensure
company of stronger, will our FHFA we on what exit the we to the are us the be done While exit This actions of work during undertaking the we’ve certain outcome cannot process. conservatorship, position be that builds conservatorship. regardless
working are enhance systems and we technology, instance, company’s the architecture, business core data to For environment processes.
already position administrative year, ways are managing expenses, our we hedge the next improve These company’s improvements do strengthen among company conservatorship. more We us engines help building in by, looking underwriting driving also and at to other the support accounting the activities do not our exit the mission. to if stronger and on to we to comprehensively implementing pricing work and financial things, even ESG make
our let turn me Finally, to outlook. XXXX
to by to investment demand supported XXXX housing market. GDP While expect continued slow greater strong by grew modestly business to and XXXX, we in X.X%, consumption, consumer a growth meet X.X%
well as will we Given the already low hold Fed as interest environment rates developments, rate anticipate the economic in interest steady XXXX. positive that
conditions, of half to home the is As expected continue for growth to decelerate housing, year though second overall growth production, growth rate in the we expect to be overall economic price in down Due X%, the expand to we homebuilders XXXX. in slightly bring home strong XXXX, to driving to above construction. above price favorable in growth housing to just just expect from X%
about though still historic starts new levels. and units X expect housing XXXX in single-family the highest We million top is to since XXXX, This to XXXX. XX% grow muted by compared to level in
We new forecast have in for also increased sales home our XXXX.
declining XXXX particularly to that stabilizing we economic While due refinance rates, among continued volumes fundamentals we believe compared demand, purchase expect strong mortgages. to origination support mortgage
We have increased XXXX, billion. originations forecast decline originations XXXX in XX% purchase partially to X% anticipated refinance over than to trillion offsetting mortgage our the $X.XX $XXX higher
to to XX% in We originations from XX% XXXX. expect the refinance XXXX in share decrease of
be than Given our lower XXXX. expect our in to XXXX in outlook, we earnings
business, income portfolio amortization be a growing revenues of partially in fee from to overall XXXX. headwind we expect income to that will by While guarantee lower expect a retained a declining book higher be we guarantee lower income offset interest from
sale for the while XXXX loans are loans less re-performing of to the may in income for pretax of loans we and gains held redesignations of well In considering XXXX, to on sale sales investment driven as associated the earnings. population substantial as declines. Additionally, in recent extent these non-performing billion sale see for held we in of and periods, redesignation these benefit $X.X has from contributed the loans investment
pretax home Actual XXXX, $XXX credit-related income. XXXX, income million growth rising home further Further, of while in drove income pretax growth interest price projected in likely slower expected declining $XXX drove will are reduce a million price rates rates headwind. of and while
in affecting factor gains number value fluctuations cannot losses our may rates. a which financials value interest and that predict fair is losses, Another fair drive changes We due XXXX. or rates in period-to-period factors from gains to in fluctuate including of could
and CECL. credit CECL, also loan shorter acquired allowance may as over XXXX of allowance equal, losses incurred CECL the will the higher be expected being Under our than the life will higher much of else the higher all of existing on be book newly the horizon. on because Finally, a expense losses adoption be reflect will loans over rather
allowance in on even impact than have may forecasted allowance model. lifetime home these loss expected volatility a be CECL’s also expense the rates and to the loss environment. model more and higher, under may adoption Additionally, expected lifetime under on changes earnings losses, Since additional the per sensitive the be actual will prices will forecast generally in drive macroeconomic incurred changes under will quarter-to-quarter. CECL now the in our volatility a interest drive greater and allowance credit-related in greater multifamily allowance loan benign
I and take turn questions. that, will and it the operator, with to your And I over Hugh will
