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(In conservatorship)

As this change in accounting policy is not material to our financial statements, we recorded the impact of this change in accounting principle as an adjustment to current period fair value losses and did not retrospectively adjust the consolidated financial statements for this change.
Regulatory Capital
FHFA has announced that, during the conservatorship, our existing statutory and FHFA-directed regulatory capital requirements will not be binding and that FHFA will not issue quarterly capital classifications. We submit capital reports to FHFA, and FHFA monitors our capital levels. The deficit of core capital over statutory minimum capital was $142.2 billion as of March 31, 2015 and December 31, 2014.
Under the terms of the senior preferred stock, we are required to pay Treasury a dividend each quarter, when, as and if declared, equal to the excess of our net worth as of the end of the preceding quarter over an applicable capital reserve amount. The Director of FHFA directs us to make dividend payments on the senior preferred stock on a quarterly basis. Therefore, we do not expect to eliminate our deficit of core capital over statutory minimum capital.
Related Parties
As a result of our issuance to Treasury of the warrant to purchase shares of Fannie Mae common stock equal to 79.9% of the total number of shares of Fannie Mae common stock, we and Treasury are deemed related parties. As of March 31, 2015, Treasury held an investment in our senior preferred stock with an aggregate liquidation preference of $117.1 billion. FHFA’s control of Fannie Mae and Freddie Mac has caused us, FHFA and Freddie Mac to be deemed related parties.
Our administrative expenses were reduced by $16 million and $17 million for the three months ended March 31, 2015 and 2014, respectively, due to reimbursements from Treasury and Freddie Mac for expenses incurred as program administrator for Treasury’s Home Affordable Modification Program (“HAMP”) and other initiatives under Treasury’s Making Home Affordable Program.
During the three months ended March 31, 2015, we did not make any tax payments to the Internal Revenue Service (“IRS”), a bureau of Treasury. We made tax payments of $425 million during the three months ended March 31, 2014. We received a refund of $135 million from the IRS during the three months ended March 31, 2015 for income tax adjustments related to tax years 2004 through 2006.
Under the temporary credit and liquidity facilities (“TCLF”) program, we had $342 million and $390 million outstanding, which includes principal and interest, of standby credit and liquidity support as of March 31, 2015 and December 31, 2014, respectively. Under the new issue bond (“NIB”) program, we had $4.2 billion outstanding of pass-through securities backed by single-family and multifamily housing bonds issued by housing finance agencies (“HFAs”) as of March 31, 2015 and December 31, 2014. Treasury will bear the initial losses of principal under the TCLF program and the NIB program up to 35% of the total original principal on a combined program-wide basis, and thereafter we will bear the losses of principal that are attributable to the TCLF and the securities we have issued. Treasury will also bear any losses of unpaid interest under the two programs. As of March 31, 2015, there had been no losses of principal or interest under the TCLF program or the NIB program.
The fee revenue and expense related to the Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) are recorded in “Mortgage loans interest income” and “TCCA fees,” respectively, in our condensed consolidated statements of operations and comprehensive income. We recognized $382 million and $322 million in TCCA fees during the three months ended March 31, 2015 and 2014, respectively, of which $382 million had not been remitted to Treasury as of March 31, 2015.
In connection with the GSE Act, and for the three months ended March 31, 2015, we accrued, but have not yet paid, $18 million in expenses in connection with our funding obligation to Treasury’s Capital Magnet Fund. These expense accruals, which are classified in “Other expenses, net”, were measured as a portion of the product of 4.2 basis points and the unpaid principal balance of total new business purchases for the three months ended March 31, 2015.
As of March 31, 2015 and December 31, 2014, we held Freddie Mac mortgage-related securities with a fair value of $7.0 billion and $6.9 billion, respectively. We recognized interest income on these securities held by us of $61 million and $78 million for the three months ended March 31, 2015 and 2014, respectively. In addition, Freddie Mac may be an investor in