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Freddie Mac’s Serious Delinquency Rate Slips to Three-Year Low

""Freddie Mac's"":http://www.freddiemac.com single-family seriously delinquent rate decreased from 3.37 percent in September to 3.31 percent in October--the lowest it's been since August 2009. The McLean, Virginia-based GSE's multifamily delinquency rate also fell, from 0.27 percent in September to 0.24 percent for the month of October.


At the same time, Freddie Mac's total mortgage portfolio continued to shrink, however increased purchase and issuance volume pushed the company closer to positive growth for the first time in more than a year and a half.

According to the GSE’s ""monthly volume summary"":http://www.freddiemac.com/investors/volsum/pdf/1012mvs.pdf, its mortgage portfolio contracted at an annualized rate of 0.8 percent in October, a significant leap from negative 9.4 percent in September.


It’s also a step up from October 2011, when the company reported negative 5.2 percent growth in its total portfolio. Year-to-date, Freddie's portfolio has shrunk at an average annualized pace of 6.0 percent.

The portfolio was at approximately $1.97 trillion at the end of the month. The last time the portfolio posted positive growth was in February 2011, when it grew at an annualized rate of 0.1 percent.

Freddie Mac reported a little more than $50 billion in purchases and issuances during the month, up significantly from $39 billion in September and $33 billion a year ago. The last time monthly volume was at such a high level was in June 2009 ($63.2 billion).

The company reports $377.6 billion in volume from the beginning of the year through the end of October.

According to the GSE, single-family refinance loan purchase and guarantee volume reached $37.2 billion during the month, making up 74 percent of its total secondary volume.

Freddie Mac’s mortgage-related securities portfolio grew slightly for the first time in four months. The company issued $45.2 billion in securities, growing its portfolio at an annualized rate of 0.3 percent.

The total number of loan modifications was 6,988 in October, bringing the year’s total to 56,671.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

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