Wednesday, November 4, 2009

Fannie, Freddie Single-Family Home Delinquencies Continue to Rise

Delinquencies on single-family homes continued to rise at the two big government-sponsored mortgage lenders, Fannie Mae and Freddie Mac, indicating that problems have yet to level off.

Fannie Mae said the delinquency rate on loans in its single-family guarantee business rose 0.28 percentage points to 4.45 percent in August, the latest month Fannie has data for, well above 1.57 percent in August 2008.

At Freddie Mac, delinquencies on single family homes rose 0.20 percentage points in September to 3.33 percent of its loan book, compared with 1.22 percent in September 2008.

Fannie Mae said that September data for its mortgage investment portfolio showed an annualized growth rate of 22.4 percent, to $792.7 billion, for an annualized 0.9 percent increase in the year to date. In September 2008, the portfolio totaled $761.4 billion.

The company’s total loan book increased at a 5.2 percent annualized rate in September, to $3.243 trillion, representing an annualized 5.7 percent increase for the year to date.

Fannie Mae data showed that it provided $67 billion in liquidity to the market, with net retained commitments of $7.8 billion and mortgage-backed securities issuances of $59.2 billion.

Fannie Mae mortgage-backed securities and other guarantees grew at a compound annualized rate of 6.9 percent in September to $2.821 trillion, representing an annualized 10.8 percent increase for the year to date.

The multifamily delinquency rate was unchanged at 0.56 percent in August, compared to only 0.16 percent in August 2008.

Freddie Mac said its mortgage investment portfolio grew by an annualized 7.3 percent rate in September, increasing to $784.2 billion, representing an annualized decrease of 3.4 percent for the year to date. In September 2008, the portfolio was $736.9 billion.

Freddie Mac’s multifamily delinquency rate rose slightly in September, to 0.11 percent from 0.10 percent in August. A year earlier it was 0.01 percent.

Freddie Mac’s refinance-loan purchase volume was $21.4 billion in September, down from $35.6 billion in August.

The GSE’s total mortgage portfolio increased at a 0.8 percent annualized rate in September to $2.243 trillion, representing an annualized 2.1 percent increase for the year to date.

 

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Anthony J Crecco

Short Sale and Loan Modification Expert

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