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» VISIT US ONLINE @ DSNEWS.COM 5 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff According to a New York Times piece on the increased risk climate change poses to the mortgage industry, $60 billion to $100 billion in new mortgages are issued for coastal homes each year. People who purchased homes in 2012 have earned $203 billion in home equity, and the buyer who bought a home the year prices reached their lowest point following the Great Recession has earned $141,000 in home equity, as reported by Redfin. FHFA ASSESSES THE STRENGTH OF FANNIE, FREDDIE INSIDE THE JOURNAL // ON THE WEB // THE APP SPECTRUM // MOVERS & SHAKERS TAKE A LOOK INSIDE THE NUMBERS D A T A B I T S Source: LendingTree, "Higher Auto Debt-to-Income Ratios Point to Lower Life Expectancy, Study Reveals" COUNTIES WITH HIGHEST LIFE EXPECTANCY RELATED TO DEBT COUNTIES WITH LOWEST LIFE EXPECTANCY RELATED TO DEBT 1 WALKER COUNTY, ALABAMA 2 TALLADEGA COUNTY, ALABAMA 3 RUSSELL COUNTY, ALABAMA 4 ETOWAH COUNTY, ALABAMA 5 BALTIMORE CITY COUNTY, MARYLAND 6 PORTSMOUTH CITY COUNTY, VIRGINIA 7 JEFFERSON COUNTY, ARKANSAS 8 SPALDING COUNTY, GEORGIA 9 CALHOUN COUNTY, ALABAMA 10 ST. LOUIS CITY COUNTY, MISSOURI 1 KAUAI COUNTY, HAWAII 2 MARION COUNTY, CALIFORNIA 3 MONTGOMERY COUNTY, MARYLAND 4 HUNTERDON COUNTY, NEW JERSEY 5 SANTA CLARA COUNTY, CALIFORNIA 6 SAN MATEO COUNTY COUNTY, CALIFORNIA 7 WESTCHESTER COUNTY, NEW YORK 8 FAIRFAX COUNTY, VIRGINIA 9 CARVER COUNTY, MINNESOTA 10 COLLIER COUNTY, FLORIDA Provisions for credit losses would be the largest contributing factor to losses at Fannie Mae and Freddie Mac under severely adverse economic conditions, according to the results of a stress test conducted by the Federal Housing Finance Agency (FHFA) under the Dodd- Frank Act. According to the FHFA report, apart from provisions for credit losses, the global market shock impact on trading securities and available-for- sale securities would be the largest contributing factor for losses at the two government-sponsored enterprises (GSEs) under FHFA's conservatorship. e stress test results also revealed that comprehensive losses decreased in the stress test for 2019 compared to the one conducted in 2018. e decline, according to the FHFA, was "mostly driven by the decrease in provision for credit losses as a result of the less severe decline in home prices" included in the 2019 scenario and "the improvement in the credit profile of the GSEs' books of business." e 2019 stress test scenario was based on a severe global recession accompanied by stressed commercial real estate and corporate debt markets. FHFA said that the scenario was not a forecast, but a hypothetical future economic environment that was designed to "assess the strength of the Enterprises and other financial institutions, and their resilience to unfavorable market conditions." e report said that the planning horizon for the implementation of the 2019 stress test was over a period of nine quarters from December 31, 2018, to March 31, 2021. Additionally, compared to last year's stress test scenario, the 2019 severely adverse scenario includes a more severe recession and a larger increase in the unemployment rate. is year's severely adverse scenario, also included a decline in the 10-year Treasury yield, a factor that had remained unchanged in the scenario last year resulting in a much steeper yield curve and reflecting a global aversion to long-term fixed- income assets. PAGE 14 Managing Shareholder, Reimer Law Co. COUNSEL'S CORNER WITH Richard Nielson RANKING METRO RANKING METRO "Compared to last year's stress test scenario, the 2019 severely adverse scenario includes a more severe recession and a larger increase in the unemployment rate."

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