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Fannie Mae Updates on Single-Family Delinquency Rate

Fannie Mae Conventional Single-Family Serious Delinquency Rate increased 59 basis points to 3.24% in July. One year earlier, this serious delinquency rate was 0.67%.

In weighing serious delinquency rates based on vintage, the highest level of problematic loans was in the 2005 to 2008 origination period (9.36%), followed by loans originated in 2004 and earlier (5.57%) and loans originated from 2009 onward (2.79%).

As of July 31, 5.8% of Fannie Mae’s Single-Family Guaranty Book of Business was based on unpaid principal balance in active forbearance and 5% of its loan count was also in active forbearance; in comparison. The majority of loans were active forbearance were attributed to financial problems related to the COVID-19 pandemic.

Fannie Mae’s Multifamily Serious Delinquency Rate increased 25 basis points to 1.25%, while only 1.1% of its Multifamily Guaranty Book of Business based on unpaid principal balance was in an active forbearance. As with the single-family side of the business, Fannie Mae attributed the majority of active forbearance conditions to the pandemic’s economic tumult.

Fannie Mae's Guaranty Book of Business increased at a compound annualized rate of 8.7% in July, to $3.55 billion, with $3.43 billion in mortgage-backed securities and $115.4 million in mortgage loans. In comparison, the Guaranty Book of Business was at a compounded annualized rate of 6.8% for a total of $3.31 billion.

Fannie Mae issued resecuritizations in July that were backed by $8.4 billion in Freddie Mac securities. Fannie Mae's maximum exposure to Freddie Mac collateral for the month that was included in outstanding Fannie Mae resecuritizations was $105.7 billion.

About Author: Phil Hall

Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast "The Online Movie Show," co-host of the award-winning WAPJ-FM talk show "Nutmeg Chatter" and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill's Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire.
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