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Fannie Mae’s Mortgage Portfolio and Serious Delinquency Rates Drop Yet Again

fanniemaeWhile Fannie Mae's Book of Business dropped slightly at a compound annualized rate of 1.3 percent in July, the GSE's gross mortgage portfolio declined at a rate of 16 percent, marking the fourth month in a row ninth time in 12 months the portfolio declined at a double-digit annualized rate, according to Fannie Mae's July 2015 Monthly Volume Summary released Monday.

Fannie Mae's gross mortgage portfolio has contracted at an average annualized rate of 11.6 percent for the first seven months of 2015 after contacting at an annualized rate of 15.8 percent for the entire year of 2014.

July's contraction at a rate of 16 percent dropped the value of Fannie Mae's gross mortgage portfolio by nearly $6 billion down to $384.6 billion. The gross mortgage portfolio for Fannie Mae has expanded only three times in the last 61 months dating back to June 2010 (March 2015, January 2015, and December 2012). The value of the portfolio has declined by more than half since June 2010, from $818 billion that month down to $384.6 billion in July 2015. It has declined about than $27 billion just since March 2015, when its value was $411.7 billion.

The value of Fannie Mae's Book of Business dropped from $3.110 trillion in June down to $3.106 trillion in July with the annualized rate contraction of 1.3 percent. The Book of Business, which includes the gross mortgage portfolio plus the total Fannie Mae mortgage-backed securities and other guarantees less the Fannie Mae mortgage-backed securities in the portfolio, contracted at an average compound annualized rate of 0.09 percent this year. It has contracted in six of the first seven months of 2015.

Fannie Mae MVS

The serious delinquency rate on single-family mortgage loans backed by Fannie Mae dropped another three basis points down to 1.63 percent in July and is now well below its pre-crisis level, as well as less than half of the national serious delinquency rate of 3.5 percent for June reported by CoreLogic. For Fannie Mae, the single-family serious delinquency rate has declined every quarter since Q1 2010.

The total value of Fannie Mae's mortgage-backed securities and other guarantees for July was $2.813 trillion, a slight increase from June's total of $2.812 trillion.

The number of loan modifications completed by Fannie Mae was down slightly, from 8,356 in June down to 7,890 in July. Year-to-date as of the end of July, Fannie Mae has completed 60,804 loan mods, an average of 8,686 per month. Fannie Mae completed an average of 10,235 loan mods per month for the full year of 2014.

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.

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