Freddie Mac’s Portfolio Shrinks in May. Delinquency Rate Flat

by devteam June 25th, 2010 | Share

Freddie Mac's total mortgage portfolio shrunk by $7.53rnbillion or 4.0 percent during the month of May, resuming the decline that beganrnin January. </p

Despite a 3 percent upwardrnblip in April, the portfolio has dropped 2.9 percent since the first of thernyear and now has a total balance of $2.22 trillion.  The total portfolio, however, is still 18.2rnpercent larger than it was in May 2009. rnThe annualized liquidation rate in May was 17.8 percent compared to 19.2rnpercent in April.</p

The refinance-loan purchase and guarantee volume in the Mortgage-RelatedrnInvestments Portfolio was 17.1 billion, down from 18.4 billion in May.  The Investments Portfolio declined in valuernto 748.1 billion, a decrease of $9.2 billion or 14.5 percent from April and 2.3rnpercent since May 2009. The breakdown of that portfolio in May compared to Aprilrn2010 and May 2009, expressed in $millions, was:</p


The delinquency rate among single family based mortgages wasrnunchanged from April at 4.06 percent. rnThis is the third month in a row there has been no increase in the totalrndelinquency rate, however delinquencies are still running much higher than onernyear ago when the rate was 2.73 percent.  Delinquencies represented 3.15 percent of thernnon-credit enhanced portfolio, also unchanged from last month, while the raternin the credit-enhanced portion of the portfolio ticked up one basis point to 8.69rnpercent.  Multi-family delinquenciesrnincreased from 0.25 percent in April to 0.32 percent. </p

Thernmeasure of Freddie Mac's exposure to changes in portfolio market value averagedrn$455 million in May with a duration gap that averaged 0 months. These measuresrninclude the impact of purchases and sales of derivative instruments used tornlimit exposure to changes in interest rates.

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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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