Having fallen below its 2016 cap of $339.3 billion in March, Fannie Mae’s gross mortgage portfolio contracted further in both April, May June and now July, shrinking at an annual rate of 24.7 percent and serious delinquency decreased 2 basis points, according to Fannie Mae's July 2016 Monthly Volume Summary.
Fannie Mae’s serious delinquency rate, or the share of loans backed by Fannie Mae that were seriously delinquent, declined by two basis points from June to July down to 1.30 percent. Fannie Mae completed 6,958 loan modifications in July, down from 7,629 in June.
The 24.7 percent rate of contraction in July was almost five times the rate of shrinkage in June and 5.1 percent. With July’s contraction, the aggregate unpaid principal balance (UPB) of Fannie Mae’s gross mortgage portfolio was $308.88 billion at the end of the month—down by about $6.6 billion from June, according to Fannie Mae. The portfolio has declined at an annual rate of 17.3 percent over the first seven months of 2016.
Fannie Mae's total book of business, which includes the gross mortgage portfolio plus total Fannie Mae mortgage-backed securities and other guarantees minus Fannie Mae MBS in the portfolio, increased at a compound annualized rate of 0.2 percent in July up to a value of about $3.103 trillion, according to Fannie Mae.
In January 2016, Fannie Mae’s gross mortgage portfolio experienced a rare expansion, increasing at an annual rate of 5 percent. With July’s contraction, the portfolio has now contracted in all but four months since June 2010. The four months in which the portfolio expanded were January 2016, March 2015, January 2015, and December 2012. At the beginning of that stretch in June 2010, the amount of unpaid principal balance (UPB) of the loans in the portfolio was $818 billion.
Click here to view the complete Monthly Volume Summary for July.