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Fannie Mae Portfolio Reduction Picks up Speed
The size of Fannie Mae’s Gross MortgagernPortfolio dropped in July by the largest percentage in at least two years, fallingrnfrom an ending balance in June of rn$565.20 billion to $547.05 billion by the end of July, a compoundedrnannual growth rate of -32.4 percent. Therncompounded growth rate in the portfolio thus far in 2013 is -22.1 percent.</p
The decline in the portfolio came mainlyrnfrom several areas of activity but primarily Sales and Net Retained Commitments. Commitments to Purchase were down from $74.33rnbillion in June to $62.45 billion and Commitments to sell were down fromrn-$72.24 billion to -$67.72 billion. ThusrnNet Retained Commitments fell from $2.09 billion to -$5.28 billion. Purchases for the portfolio totaled $22.12rnbillion compared to $24.57 billion. Sales rose from -$23.51 to -$29.45 billion andrnliquidations from -$10.71 to -$10.81 billion.</p
The compounded growth rate for the company’srnTotal Book of Business decreased by 1.7 percent from a balance of $3.173rntrillion in June to $3.169 trillion in July. rnThe year-to-date compounded growth rate for the Total Book is -1.1rnpercent.</p
In addition to the Gross MortgagernPortfolio the Total Book was composed of $2.770 trillion in Fannie MaernMortgage-Backed Securities (MBS) and other Guarantees and $147.99 billion ofrnMBS in Portfolio. New BusinessrnAcquisitions during the month were $73.39 billion, a total of $541.35 billionrnyear-to-date.</p
Fannie Mae MBS had an ending balance ofrn$2.738 trillion, up from $2.728 trillion in June. Issuances totaled $73.09rnbillion (compared to $67.34 billion) and liquidations -$63.00 billion from -$69.63rnbillion. The Annualized Liquidation Raternwas -27.72 percent in July and is -30.84 percent thus far in 2013.</p
Fannie Mae MBS and other Guarantees werern$32.48 billion for the month; in June they were $32.77 billion. The compound growth rate in that portfoliornwas 4.3 percent for the month and 1.8 percent year to date. Mortgage loans were $336.13 billion in July</bcompared to $343.74 billion in June.</p
Fannie Mae’s serious delinquency rate</bwas 2.70 percent at the end of July, down from 2.77 percent the previous monthrnand 3.50 percent in July 2012. The raternfor non-credit enhanced loans was 2.24 percent compared to 2.30 percent in Junernand 2.84 percent a year earlier. Therncredit-enhanced loan delinquency rate was 5.57 percent, down from 5.79 percentrnand 7.76 percent in the two earlier periods. rnThe multifamily delinquency rate was 0.18 percent, 10 basis points belowrnthe June rate and 8 below the rate in July 2012.</p
The company said it completed 11,870rnloan modifications in July. This bringsrnthe number of modifications in 2013 to 95,281. rn
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Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.
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