HOUSE_OVERSIGHT_020920.jpg
1.34 MB
Extraction Summary
1
People
8
Organizations
1
Locations
1
Events
1
Relationships
3
Quotes
Document Information
Type:
Financial presentation slides / economic report
File Size:
1.34 MB
Summary
The document consists of two slides from a KPCB 'USA Inc.' financial presentation (pages 157 and 158) analyzing the rising debt levels and credit losses of Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac between 1971 and 2010. The slides highlight the risks of non-conventional mortgage lending, noting that while such mortgages made up only 30% of Fannie Mae's balance, they caused the majority of losses. The document bears a 'HOUSE_OVERSIGHT_020920' Bates stamp, indicating it was part of a document production to the House Oversight Committee.
People (1)
| Name | Role | Context |
|---|---|---|
| Betsy Graseck | Analyst/Researcher |
Cited in the source footer of the second slide as part of Morgan Stanley Research.
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Organizations (8)
| Name | Type | Context |
|---|---|---|
| Fannie Mae |
Subject of debt and credit loss analysis.
|
|
| Freddie Mac |
Subject of debt analysis.
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| KPCB |
Kleiner Perkins Caufield & Byers logo appears on slides; creators of the 'USA Inc.' presentation.
|
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| Morgan Stanley Research |
Source of data for the second slide.
|
|
| FHFA |
Federal Housing Finance Agency, cited as source for the first slide.
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| Sallie Mae |
Mentioned in the notes regarding 'Other Debt'.
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| Federal Home Loan Banks |
Mentioned in the notes regarding 'Other Debt'.
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| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT'.
|
Locations (1)
| Location | Context |
|---|---|
|
Subject of the broader 'USA Inc.' presentation.
|
Relationships (1)
Source citation: 'Betsy Graseck, Morgan Stanley Research'
Key Quotes (3)
"Potential Loss on Guarantees on Fannie Mae / Freddie Mac Originations Could Rise"Source
HOUSE_OVERSIGHT_020920.jpg
Quote #1
"GSEs’ Expansion Into ‘Non-Conventional’ Mortgage Lending Business Has Proved to Be Costly So Far"Source
HOUSE_OVERSIGHT_020920.jpg
Quote #2
"Non-Conventional Mortgages = 30% of Fannie Mae’s Total Loan Guarantee Balance, But Causing 70-80% of Losses Owing to Lower Loan Quality"Source
HOUSE_OVERSIGHT_020920.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (1,391 characters)
Debt Level: Why Will It Continue to Rise?
Answer Part 3: Potential Loss on Guarantees on Fannie Mae / Freddie Mac Originations Could Rise
Answer Part 3: Potential Loss on Guarantees on Fannie Mae / Freddie Mac Originations Could Rise
Government-Sponsored Enterprises Gross Debt Composition, 1971 – 2008
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Total GSE Debt Outstanding ($B)
1971 1976 1981 1986 1991 1996 2001 2006
Freddie Mac RMBS*
Fannie Mae RMBS*
Freddie Mac Corporate Debt
Fannie Mae Corporate Debt
Other Debt
Fannie Mae RMBS*
Freddie Mac Corporate Debt
Fannie Mae Corporate Debt
Other Debt
KP CB www.kpcb.com
Note: *RMBS is residential mortgage-backed securities. Other debt includes those issued by other federal agencies such as Federal Home Loan Banks and Student Loan Marketing Association (Sallie Mae). Source: FHFA Report to the Congress 2009.
USA Inc. | Income Statement Drilldown 157
Note: *RMBS is residential mortgage-backed securities. Other debt includes those issued by other federal agencies such as Federal Home Loan Banks and Student Loan Marketing Association (Sallie Mae). Source: FHFA Report to the Congress 2009.
USA Inc. | Income Statement Drilldown 157
Debt Level: GSEs’ Expansion Into ‘Non-Conventional’ Mortgage Lending Business Has Proved to Be Costly So Far
Fannie Mae Credit Losses by Type of Mortgage Product, 1Q08 – 2Q10
$8,000
$6,000
$4,000
$2,000
$0
$6,000
$4,000
$2,000
$0
Quarterly Credit Losses ($MM)
Other Non-Conventional
Subprime
Alt A
Interest Only
Conventional
Subprime
Alt A
Interest Only
Conventional
Non-Conventional Mortgages = 30% of Fannie Mae’s Total Loan Guarantee Balance, But Causing 70-80% of Losses Owing to Lower Loan Quality
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
KP CB www.kpcb.com
Source: Fannie Mae, Betsy Graseck, Morgan Stanley Research.
USA Inc. | Income Statement Drilldown 158
Source: Fannie Mae, Betsy Graseck, Morgan Stanley Research.
USA Inc. | Income Statement Drilldown 158
HOUSE_OVERSIGHT_020920
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