Fannie Mae [1]’s gross mortgage portfolio saw its first expansion since January of this year with an annual rate of 9.1 percent. Despite the increase shown this month, the GSE is still below its 2016 cap of $339.3 billion and serious delinquency decreased 6 basis points to 1.24, according to Fannie Mae's August 2016 Monthly Volume Summary.
With the decrease seen for Fannie Mae’s serious delinquency rate, or the share of loans backed by Fannie Mae that were seriously delinquent, Fannie Mae also reports 7,489 completed loan modifications, a substantial increase from July’s 6,958.
The 9.1 percent rate of growth largely contrasts with the rate of shrinkage experience in July at 24.7 percent. With this increase, the aggregate unpaid principal balance (UPB) of Fannie Mae’s gross mortgage portfolio was $311.13 billion at the end of the month—up by about $2.25 billion from July, according to Fannie Mae. The portfolio has declined at an annual rate of 14.4 percent over the past eight 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 3.8 percent in July up to a value of about $3.113 trillion.
In January 2016, Fannie Mae’s gross mortgage portfolio experienced a rare expansion, increasing at an annual rate of 5 percent. With August’s increase, the portfolio has now seen this rarity twice this year as well as in five months since June 2010. The four months prior to August 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 August [2].