Freddie Mac Issuance Still Refi-Heavy in August

Freddie Mac’s total mortgage portfoliornended August with a principal balance of $1.93 trillion.  This represented a 5.0 percent reduction fromrnthe outstanding balance of $1.94 trillion at the end of July.  Purchases for that portfolio totaled $35.96rnbillion while Sales were ($3.87) billion, and Liquidations ($40.27)rnbillion.  The annualized growth in thernTotal Mortgage Portfolio for the year-to-date is (1.7) percent and thernAnnualized Liquidations rate is (28.0) percent.</p

The Total mortgage portfolio is the sum of Freddie Mac’s mortgage-related securities and other guarantee commitments plus the sum of mortgagernloans and non-Freddie Mac mortgage-related securities,rnboth agency and non-agency.rn</p

The Mortgage-Related InvestmentsrnPortfolio had an ending balance of $511.94 billion compared to $521.25 billionrnin July, a decrease of $9.3 billion and an annualized growth rate of (21.4)rnpercent.  This was the first drop in thernportfolio balance since May.  Purchases totaledrn$17.84 billion, Sales were ($16.52 billion and Liquidations were ($10.55)rnbillion.  </p

As of August 31, 2013, Freddie Mac had net unsettled purchase (sale) agreements of approximately $2,461 million.rn The ending balance of the mortgage-related investments portfolio as of August 31, 2013 after giving effect to these unsettledrnagreements and assumingrnthere were no other agreementsrnentered into after that date would have beenrn$514rnbillion.</p

Freddie Mac’srnmortgage-related securities and other guarantee commitments increased at anrnannualized rate of 2.3 percent to an ending balance of $1.61 trillion.</p

At the endrnof August the components making up the $511.94 billion Mortgage-RelatedrnInvestment Portfolio broke down as:  $190.82rnin PCs, REMICs and other structured securities; $20.70 billion in non-FreddiernMac Agency Securities and $106.87 billion in non-Freddie Mac non-AgencyrnSecurities; $193.55 billion in Mortgage Loans.</p

Single-familyrnrefinance loan purchases and guarantee volume was $20.8 billion during thernmonth, representing 63 percent of total single-family purchases orrnissuances.  Relief refinances werernapproximately 33 percent of the companies refinance business.</p

Freddie Mac’srntotal delinquency rate fell to 2.64 percent in August from 2.70 in July andrn3.36 percent one year earlier. rnDelinquencies of non-credit enhanced loans were at a rate of 2.25rnpercent, up one basis point from July but down from the 2.70 percent rate arnyear earlier.  The credit enhanced portfoliornhad a rate of 5.34 percent, compared to 5.90 percent and 7.64 percent in thernearlier period.  The multifamily delinquencyrnrate was .05 percent.

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