Fannie Mae Portfolio Continues Contracting; Delinquencies Decline

Fannie Mae’s Total Book of Businessrnfinished the month of August with a balance of $3.167 trillion and a compoundrnannual growth rate of (0.8) percent.  Thernbalance at the end of August was $3.169 trillion.  The Book of Business consisted of $531.28rnbillion in the Gross Mortgage Portfolio, $2.78 trillion of Fannie Maernmortgage-backed securities (MBS) and Other Guarantees less the $142.73 billion FanniernMae MBS held in portfolio.</p

The Gross Mortgage Portfolio end balancernof $513.3 billion represents the unpaid principal balance (UPB) of the mortgagernportfolio that Fannie Mae holds for investment and liquidity purposes.  The UPB takes into account net outstandingrncommitments to sell of $18.0 billion. rnThe total decreased from $547.05 billion at the end of July,rnrepresenting a compound annualized rate of decrease of (29.6) percent.  There were $201.85 billion in purchases forrnthe Gross Mortgage Portfolio and $(207.04) in sales during the month.  Liquidations totaled $(96.58) billion. </p

The end balance of the Gross Mortgage Portfoliornof $531.28 billion consists of $331.96 billion in Mortgage Loans, $9.86 billionrnin non-Fannie Mae Agency Mortgage Securities and $46.74 billion in non-FanniernMae, Non-Agency Mortgage Securities.</p

The company’s Guaranteed Securities andrnMortgage Loans consists of securities and mortgage loans for which Fannie Maernmanages credit risk.  That component ofrnthe Book of Business increased by a compound annual growth rate of 3.7 percentrnfor the month and 2.0 for the year-to-date. rnThere were issuances of $66.41 billion in MBS and liquidations totaled $(57.70)rnbillion for an annualized MBS liquidation rate of (25.29) percent for the monthrnand (30.19) percent YTD.</p

During the month Fannie Mae issuedrn$51.01 billion net commitments to purchase and $(53.96) commitments to sell,rnresulting in net retained commitments of $(2.96) billion.  YTD there have been $667.40 billion net commitmentsrnto purchase, $(607.00) billion commitments to sell and net retained commitmentsrnof $406.0 million.</p

The delinquency rate in Fannie Mae’srnConventional Single Family portfolio was 2.61 percent at the end of August,rndown from 2.70 percent in July and 3.44 percent one year earlier.  Non-credit enhanced loans had a delinquencyrnrate of 2.18 percent compared to 2.24 percent the previous month and 2.80rnpercent in August 2012.  The rate in the creditrnenhanced portion of the portfolio was 5.36 percent compared to 5.57 percent andrn7.56 percent in the two earlier periods. rnThe multifamily delinquency rate was unchanged at 0.18 percent.</p

Fannie Mae completed 13,791 loanrnmodifications in August.  This brings thernyear-to-date total of modifications to 109,172.

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