Search

Fannie Mae Expands Portfolio, Delinquencies Rising

by devteam June 30th, 2009 | Share

Fannie Mae, the mortgage goliath taken under government control last September, yesterday announced that its portfolio expanded by an annual rate of 35.1% in May, marking a stark contrast to the 19.2% decline in April.

In its summary of monthly highlights, the agency said it provided nearly $72 billion of liquidity to the market, mostly in the form of Mortgage-Backed Securities ($67.7 billion). Fannie also securitized more than $61 billion of whole loans within their investment portfolio.

Fannie, the largest funder of U.S. home mortgages, began accepting refinance mortgage originations in April, as part of its ‘Making Home Affordable’ Program. This helped their refinance volume increase to $57 billion in May.

“We expect that our refinance volumes will remain above historical norms in the near term, but may fluctuate from month-to-month based on a number of market factors,” the press release stated. Looking ahead, Fannie said the MHA Program “will bolster refinance volumes over time as major lenders adopt necessary system changes and consumer awareness continues to build.”

Fannie’s total portfolio of mortgage holdings grew from $770.1 billion to $789.6 billion in the month, and they are expected to expand it to $900 billion later this year, before reducing activity early next year.

Meanwhile, delinquencies are on the rise: Fannie said the pace of serious delinquent payments â€

About the Author

devteam

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

See all blogs
Share

Comments

Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...