Fannie Mae's Portfolio down 9.9 Percent in July

by devteam August 31st, 2012 | Share

Fannie Mae reduced its Gross MortgagernPortfolio by $5.86 billion during July to $667 billion and is reducing thatrnportfolio at a compound annualized rate of 9.9 percent compared to 10.2 percentrnfor the entirety of 2011.  The portfoliornstood at $708.4 billion on December 31, 2011.</p

The Gross Mortgage Portfolio containsrn$386.36 billion in mortgage loans, $13.71 billion in Non-Fannie Mae AgencyrnMortgage Securities and $69.26 billion in Non-Fannie Mae Non-Agency MortgagernSecurities.</p

The Department of the Treasury revisedrnits Preferred Stock Purchase Agreement (PSPA) with both Fannie Mae and FreddiernMac earlier this month and, among the changes, ramped up the pace at which therntwo government-sponsored enterprises (GSEs) must liquidate their portfolio.  Under the original agreement the portfolios werernmandated to be reduced at an annual rate of 10 percent, reaching a target valuernof $250 billion by 2022; the new requirement is a 15 percent annual reductionrnwith a new target date of 2018.</p

Fannie Mae’s book of business increased</bat a compound annualized rate of 1.5 percent in July to $3.20 trillion comparedrnto $3.18 trillion in June.  In additionrnto the gross mortgage portfolio this includes Total MBS and other guarantees ofrn$2.72 trillion and MBS in Portfolio of $199.66 billion and reflects $77.1 billionrnin new business acquisitions during the month.</p

The total delinquency rate in thernconventional single family portfolio was 3.50 percent compared to 3.53 percentrnin June and 4.08 percent in July, 2011. rnThe rate among non-credit enhanced loans was 2.84 percent compared torn2.86 percent in June and 3.14 percent a year earlier.  Among credit enhanced loans the rate was 7.76rnpercent, down from 7.86 percent month-over-month and 9.69 percentrnyear-over-year.  The delinquency rate inrnthe Multi-Family Portfolio was 0.26 percent, a drop of 3 basis points from Junernand 19 basis points from July, 2011.</p

The Effective Duration Gap on Fannie Mae’srnportfolio averaged zero months in July, unchanged from the previous 12 months.</p

During the month of July Fannie Maerncompleted 11,410 loan modifications bringing the total for 2012 to date torn93,413 modified loans.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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