Freddie Mac mortgage portfolio continues expansion

Freddie Mac bought $47.3 billion worth of loans in April and also liquidated $41.9 billion of loans, causing its mortgage portfolio to increase at an annualized rate of 0.6% in April, according to its monthly volume summary report. 

This is the first time the government-sponsored enterprise saw its mortgage portfolio expand this year, suggesting the enterprise is feeding of its impressive yearly and quarterly profits.

Single-family refinance-loan purchase and guarantee volume totaled $35.8 billion in April, representing 76% of total mortgage portfolio purchases of issuances. 

Additionally, relief refinance mortgages compared 33% of the GSE’s total refinance volume during the month based on unpaid principal balance. 

Freddie Mac modified 6,068 loans in April and 26,681 for the four months ending April 30. 

The unpaid principal balance of the agency’s mortgage-related investment portfolio decreased by $5.9 billion.

Meanwhile, mortgage-related securities and other guarantee commitments increased at an annualized rate of 4.1% in April.

Seriously delinquent single-family mortgages shrunk from 3.03% in March to 2.91% in April. The multifamily delinquency rate also fell from 0.16% in March to 0.09% in April. 

The measure of the GSE’s exposure to changes in the portfolio market value averaged $355 million in April, with a duration gap averaging down one month. 

 

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