Release of Updated Blueprint for Restoring Safety and Soundness to Fannie Mae and Freddie Mac

Moelis & Company MC, a leading global independent investment bank and financial advisor to certain non-litigating junior preferred shareholders of Fannie Mae and Freddie Mac, today announced the release of the Blueprint for Restoring Safety and Soundness to the GSEs: One Year Later.

The original Safety and Soundness Blueprint laid out the means and process by which to rebuild capital at Fannie and Freddie as shareholder‐owned single‐purpose insurers, refocused on their core conventional mortgage guarantee business, de‐levered, and held to the highest regulatory and capital standards. One year later, on the 10 year anniversary of Fannie and Freddie being placed in conservatorship, the Safety and Soundness Blueprint continues to provide the only mathematically credible, detailed, and achievable path forward for the GSEs.

The updated Safety and Soundness Blueprint contains the following developments since the Blueprint's original release in June 2017:

• The indicative valuation of the Treasury Department's warrants has substantially increased, based on lower tax rates from the Tax Cuts and Jobs Act of 2017 and better-than-expected credit performance at Fannie and Freddie.
• The government has been completely repaid by both Fannie and Freddie, with returns now exceeding the original 10% annualized rate of return established at the start of the conservatorship.
• There has been increasing convergence in the views of industry and other stakeholders that the Administration should have the GSEs start building capital and must lead efforts to remove the enterprises from conservatorship.
• FHFA has developed, and released for public comment, its new post-conservatorship regulatory capital framework for the GSEs.

To view the full Blueprint for Restoring Safety and Soundness to the GSEs: One Year Later, visit www.gsesafetyandsoundness.com.

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About Moelis & Company

Moelis & Company is a leading global independent investment bank that provides innovative strategic advice and solutions to a diverse client base, including corporations, governments and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive integrated financial advisory services across all major industry sectors. Moelis & Company's experienced professionals advise clients on their most critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. The Firm serves its clients from 19 geographic locations in North and South America, Europe, the Middle East, Asia and Australia. For further information, please visit: www.moelis.com or follow us on Twitter @Moelis.

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