GSEs Weigh in on Serious Delinquencies, Loan Mods

The conventional single-family serious delinquencies in Fannie Mae's portfolio dropped nine basis points to 0.88 percent in July. It decreased from 82 basis points in June to 78 basis points in July for Freddie Mac, according to the monthly summary released by the government-sponsored enterprises (GSEs) for July.

The monthly summary reports for Fannie Mae and Freddie Mac contain information about their monthly and year-to-date activities for their gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, serious delinquency rates, and loan modifications.

According to the reports, which were released separately by both GSEs, Fannie Mae's book of business increased at a compound annualized rate of 2.5 percent in July, while Freddie Mac's total mortgage portfolio increased at an annualized rate of 3.5 percent.

Freddie Mac said that its single-family refinance-loan purchase and guarantee volume stood at $6.4 billion at the end of July representing 23 percent of its single-family portfolio purchases and issuances. On the other hand, Fannie Mae's mortgage-backed securities (MBS) portfolio stood at $5.1 billion during the month. Freddie Mac mortgage-related securities and other mortgage-related guarantees increased at an annualized rate of 2.3 percent during the month.

In July, Freddie Mac said that the purchases of its mortgage-related securities into the mortgage-related investments portfolio totaled $5 billion (based on UPB).

In terms of loan modifications, Fannie Mae said that it had completed 11,033 loan mods during the month.

The aggregate unpaid principal balance (UPB) of Freddie Mac's mortgage-related investments portfolio increased by approximately $7.7 billion in July. "The measure of our exposure to changes in portfolio market value (PMVS-L) averaged $26 million in July," Freddie Mac said in its report, adding that the duration gap of its exposure averaged 0 months.

To read the full Freddie Mac monthly summary for July, click here.

To read the full Fannie Mae monthly summary for July click here.