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Fannie Mae Reports Decline in Business

Fannie Mae [1] reported further contraction in its book of business for February—the second this year and the third in as many months—as new business acquisitions dropped to a five-year low.

According to the enterprise’s monthly volume summary [2] for February, business shrank at a compound annual rate of 1.4 percent, bringing the book’s total growth rate for the year to -2.4 percent.

As of the end of the month, the book’s total value was approximately $3.15 trillion.

The decline in business was accompanied by a slight dip in new acquisitions, which totaled $29.3 billion for the month. The last time new business acquisitions were that low was January 2009, when they totaled $28.8 billion.

Also down once again was the single-family serious delinquency rate, which ended the month at 2.27 percent—the lowest since November 2008. The multifamily delinquency rate, meanwhile, edged up 1 basis point to 0.11 percent.

Fannie completed 10,837 loan modifications in February, totaling 23,402 year-to-date.