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Fannie and Freddie: Portfolio Update

Freddie Mac reported its total mortgage portfolio increased at a compound rate of 14.2% annually during June 2020. Fannie Mae reported a 13.4% annualized growth rate during the same month. 

Delinquency rates continued to rise, both Freddie Mac and Fannie Mae report.  

Fannie Mae reported its conventional single-family serious delinquency rate increased 176 basis points to 2.65% in June and that, as of June 30, 6.7% of its single-family portfolio based on unpaid principal balance had received forbearance. Most loans that had entered forbearance plans did so due to issues related to COVID-19, and 24of them were still current, Fannie Mae reported. 

Freddie Mac’s single-family delinquency rate increased between May and June from 81 to 248 basis pointsFreddie Mac reported its aggregate unpaid principal balance of its mortgage-related investments portfolio increased by approximately $6.2 billion in June.     

Multifamily delinquency rates increased from 9 basis points in May to 10 basis points in June, Freddie Mac reported, and increased 53 basis points for Fannie Mae. Many multifamily forbearance loans also are COVID-related, Fannie Mae reported. 

Since March, the nationwide delinquency rate has continued to reach all-time increase highs each month. 

Single-family refinance-loan purchase and guarantee volume in June represented 78 % or $65.5 billion of Freddie Mac’s total single-family mortgage portfolio purchases. 

Freddie Mac mortgage-related securities and other mortgage-related guarantees increased at an annualized rate of 9.5 % in June.  

Both Fannie Mae and Freddie Mac noted that they have been under conservatorship since 2008 with the Federal Housing Financing Agency, acting as a conservator.  

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

About Author: Christina Hughes Babb

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Christina Hughes Babb, a graduate of Southern Methodist University, has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, Dallas Morning News, and more.

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