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Is Freddie Fattening Up its Portfolio

Freddie Mac’s total mortgage portfolio has increased once again, this time rising at an annualized rate of 1.8 percent for the month, according to the government-sponsored entity’s May 2017 Monthly Volume Summary released today. That’s up from the 0.5 percent jump the portfolio experienced in April.

Still, despite the uptick, Freddie’s growth rate pales in comparison to a few months prior. In March, the portfolio rose at an annualized rate of 4.8 percent, in December of 2016, it jumped 10 percent over the year.

In total, Freddie completed $28.5 billion in mortgage purchases and issuances, $2.4 billion in sales, and $23 billion in liquidations in May. Its mortgage portfolio ended the month with a total balance of just more than $2 trillion.

The total aggregate unpaid principal balance of Freddie’s mortgage-related investments portfolio dropped by $7.1 billion, while its mortgage-related securities and guarantees rose at an annualized rate of 4.2 percent. As a part of its mortgage-related investments portfolio, the GSE completed $17 billion in purchases, $20 billion in sales, and $4 billion in liquidations. The ending balance on the portfolio came in at $282 billion—about $7 billion under the previous month.

Under its mortgage-related securities and guarantees portfolio, Freddie completed $27 billion in issuances and $21 billion in liquidations. The ending balance rose $6 billion over the month, closing out with an ending balance of $1.8 trillion.

For the month of May, Freddie’s total volume for single-family refinance loan purchases and guarantees came out to $9.4 billion, equaling about 40 percent of the company’s total single-family portfolio—a share that has remained steady since April. Relief mortgages accounted for 8 percent of Freddie’s total refinance volume for the month—down from 9 percent in April.

The GSE completed 3,559 single-family loan modifications for the month—down from April’s 4,588. To date, Freddie has completed just over 20,000 modifications to date this year.

Overall, the company’s seriously delinquent rate on single-family loans dropped from 0.92 percent to 0.87 percent. Multifamily delinquencies declined from 0.03 percent in April to 0.01 percent in May.

The GSE has funded $155 billion in mortgages year-to-date.

About Author: Aly J. Yale

Aly J. Yale is a longtime writer and editor from Texas. Her resume boasts positions with The Dallas Morning News, NBC, PBS, and various other regional and national publications. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.
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