Freddie Mac followed the lead of its sister government-sponsored enterprise, Fannie Mae, and reported a serious delinquency rate of less than 2 percent for August in its recently-released August 2014 Monthly Summary.
The serious delinquency rate was reported to be at 1.98 percent for Freddie Mac in August, which is a drop of .04 percentage points from the 2.02 percent that was reported in July. The new August rate represents a sharp dropoff of 0.66 percentage points from the same month a year ago, when a 2.64 percent serious delinquency rate was reported.
Fannie Mae reported a serious delinquency rate of 1.99 percent for August, and the serious delinquency rates for both GSEs have been on the decline for years. Just like analysts predicted for Fannie Mae, Freddie Mac's serious delinquency rate could drop below the "normal" level of 1.0 percent sometime in 2016 if the decline continues at its current rate.
Freddie Mac reported that the multi-family serious delinquency rate is also on the decline, dropping from 0.5 percent in July to 0.4 percent in August.
Seriously delinquent mortgage loans are defined as those that are either three months or more behind on their payments or are in foreclosure.
Also in the August report, Freddie Mac noted that there were 5,374 mortgage loan modifications in August 2014 and there have been 47,356 such modifications year-to-date for the period ending August 31, 2014. Overall, Freddie Mac's total mortgage portfolio decreased at an annualized rate of 0.4 percent for August.