Fannie Mae Conventional Single-Family Serious Delinquency Rate [1] 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.