Home / Daily Dose / Fannie Mae’s Mortgage Portfolio Plummets; Book of Business Ticks Upward
Print This Post Print This Post

Fannie Mae’s Mortgage Portfolio Plummets; Book of Business Ticks Upward

Fannie Mae Gross Mortgage PortfolioFannie Mae's gross mortgage portfolio took a huge downward turn in November, while the mortgage giant's Book of Business inched upward, according to Fannie Mae's November 2014 Monthly Summary released earlier this week.

The balance of the gross mortgage portfolio dropped from $4.36 billion in October down to $4.24 billion in November, marking the 52nd time in the last 53 months Fannie Mae's portfolio declined month-over-month. With the exception of December 2012, when the portfolio grew in value at a compound annualized rate of 1 percent, the value of the portfolio has declined every month since June 2010. At the end of that month four and a half years ago, the portfolio's value was almost $818 billion.

Year-to-date for the first 11 months of 2014, the gross mortgage portfolio has declined by an average compound annualized rate of 14.7 percent. November's decline of 28.9 percent marked the fifth-largest month-over-month decline the portfolio has experienced since the conservatorship began in September 2008. In January 2010, it declined by 44.8 percent; and in three straight months in July to September 2013, it declined by 32.4 percent, 29.6 percent, and 29.1 percent, respectively.

Meanwhile, Fannie Mae's Book of Business increased in November at a compound annualized rate of 0.7 percent up to $3.12 trillion, marking only the second time in the last 12 months the Book of Business has increased month-over-month. Year-to-date, the Book of Business has declined at an average compound annual rate of 1.5 percent.

Also in November, the serious delinquency rate on Fannie Mae's conventional single-family mortgage loans declined by one basis point from October down to 1.91 percent. November marked the 36th month in a row the serious delinquency rate declined at least one basis point month-over-month; the last time the rate did not decline was when it held steady at 4.0 percent from October to November 2011.

The value of Fannie Mae's mortgage-backed securities and other guarantees totaled $2.791 trillion in November, representing an annualized compound rate month-over-month decline of 1.0 percent after experiencing an increase in three of the previous four months. Year-to-date for the period ending November 30, 2014, MBS and other guarantees for Fannie Mae has declined at an average compound annualized rate of 0.5 percent.

Fannie Mae completed 7,417 loan modifications in November, down from 9,540 completed in October.  Year-to-date for the period ending November 30, 2014, Fannie Mae has completed 113,872 loan mods.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
x

Check Also

Fed Chair: Developments Point to Improved Economic Outlook

Holding down interest rates and leveraging the central bank’s balance sheet to encourage asset purchases is the best way to ease labor market and broader economic challenges, Powell told Congress.

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.