Delinquency Buyouts Balloon Fannie Mae’s Book of Business

Fannie Mae has released its Monthy Investor Summary for March 2010. The gross mortgage portfolio (retained portfolio) increased from $725.9 billion in Februaryto $764.8 billion in March, a compound growth rate of 87.1 percent. 

The increase in the Book of Business, Gross Mortgage Portfolio, Commitments to Purchase, and Net and New Business Acquistions reflect the GSE repurchases of $40 billion 120+ delinquent loans.  One year ago the gross mortgage portfoliohad an end balance of $783.9 billion.

The purchases, mandated by a change in accounting standards required of both Fannie Mae and Freddie Mac, will not be reflected as “liquidated” from those MBS trusts until the April report though. Because of this purchase, the corporation's total book of business grew at an annualized rate of 13.3 percent during the month compared to 1.0 percent in February and a -5.0 percent in January.  Without these delinquency purchases,  the rate for the month, their book of business would have shrunk by 2.3 percent.  The ending balance of the total book of business was $3.263 trillion compared to $3.144 trillion at the end of March 2009.  The annualized growth rate of the total book of business year-to-date is +2.8 percent.

Total outstanding debt grew to $800 billion in March from $767.09 billion in February.  In February 2009 the outstanding debt was $869.3 billion.

Delinquencies in the single family portfolio increased to 5.59 percent in February from 5.52 percent in January and 2.96 percent during the same period in 2009. Credit Enhanced mortgages had a rate of 13.8 percent 12 basis points higher than January and nearly twice the 7.7 percent recorded in February 2009.  Non-credit enhanced loans had a rate of 3.9 percent up from 3.83 in January and 1.77 in February 2009.  Multi-family delinquencies increased from 0.69 percent in January to 0.73 percent.  One year ago the multi-family delinquency rate was 0.32 percent.

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