Fannie, Freddie's Portfolios Diverge in February; Delinquencies Keep on Increasing
Fannie Mae posted modest growth in its portfolio during February, despite growing delinquencies and growing capital pressures, with the retained portfolio reaching $721.6 billion, according to data provided by the company late Monday. The company's total book of business grew at an annualized 19 percent during the month. according to a data sheet provided Tuesday morning. Nonetheless, the company's total book of business grew at a 12 percent clip in February, as the GSE also looked to pump up its issuances of MBS. Freddie said that it issued nearly $43 billion in MBS during the month, up dramatically from the paltry $29.4 billion issued during January. Delinquencies continued to increase at Freddie, as well. Total single-family loans more than 90 days in arrears reached 0.71 percent of all loans in January, up 6 basis points from December's reported total. Delinquency levels are now 28 basis points above where they were one year earlier. Both firms have been the subject of analyst attention recently. Housing Wire covered a recent UBS analyst report that suggests both GSEs, even with the additional capital recently made avaliable to them by the Office of Federal Housing Enterprise Oversight, will be unlikely to jump right into the MBS market and start buying securities. For more information, visit http://www.fanniemae.com and http://www.freddiemac.com.