The government-sponsored enterprise (GSE) Fannie Mae (FNM) reported a serious delinquency rate for its mortgage portfolio of 5.29% in November 2009, the latest month of data, the highest in recent memory. That number grew from 4.98% in October and more than doubled the 2.13% in November 2008, according to its monthly summary. For December 2009, the entire Fannie book of business grew at an annualized rate of 9.7% in December to $3.2bn. For all of 2009, the book grew 4.2%. Fannie’s mortgage-backed securities (MBS) and other guarantees totaled $2.82bn in December. It issued $55.3m in MBS – up from $40.3m in November – bringing its total issuance for the year to $807.8m. Fannie’s gross mortgage portfolio grew at an annualized rate of 37.6% in December and stood at $772.5m at the end of the year. Wilshire Credit Corp., the mortgage servicer bought by IBM (IBM) in October, is set receive a substantial servicing portfolio from Fannie and catch the servicing rights to a portion of these delinquencies. In fact, the mortgage finance industry is abuzz over a rumored change to the way Fannie and its brother GSE Freddie Mac (FRE) would assign and manage mortgage servicing rights. Write to Jon Prior.
Fannie Mae Serious Mortgage Delinquencies Rise Above 5%
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