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Freddie Mac Portfolio Expands Again While Serious Delinquency Rate Drops Further

freddie-mac-twoFreddie Mac's total mortgage portfolio expanded in August for the seventh consecutive month and the 12th time in the last 14 months when it grew at a compound annualized rate of 0.6 percent, according to Freddie Mac's August 2015 Monthly Volume Summary.

For the first eight months of 2015, Freddie Mac's total mortgage portfolio has expanded at a compound annualized rate of 1.3 percent. The 0.6 percent annual rate of expansion in August translated to an over-the-month improvement of about $1.037 billion up to approximately $1.926 trillion.

The total mortgage portfolio for Freddie Mac has expanded only 19 times in the last 68 months dating back to January 2010 despite August's increase. At the beginning of the 14-month period (July 2014) that saw 12 months of expansion, the portfolio was valued at $1.895 trillion.

For Freddie Mac-insured single-family residential loans, the serious delinquency rate continued to decline in August, dropping by another three basis points down to 1.45 percent. The serious delinquency rate on Freddie Mac-backed loans is now seven basis points lower than it was in November 2008 at the start of the financial crisis (1.52 percent) and nearly 2 percentage points lower than the national serious delinquency rate reported by CoreLogic for July 2015 (3.4 percent).

A total of 4,137 homeowners with Freddie Mac-backed loans received permanent loan modifications in August, a slight decline from July's total of 4,347. Year-to-date as of August 31, a total of 38,796 Freddie Mac-insured homeowners have received loan modifications, an average of 4,849 modifications per month. In 2014, homeowners averaged 5,596 permanent loan mods per month.

9-25 Freddie Mac MVS

Single-family refinance loan purchase and guarantee volume totaled $13.8 billion in August, down substantially from July's total of $20.2 billion. The percentage of single-family refinance loan purchase and guarantee volume that comprised the total single-family mortgage portfolio also took a big drop from July to August, from 55 percent to 50 percent. In May, the share was 61 percent. Relief refinance mortgages comprised about 10 percent of all of Freddie Mac's single-family refi volume during August, a slight increase from 9 percent in July.

To view the complete 2015 Monthly Volume Summary for August, click here.

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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