Freddie Mac bought $41.3 billion worth of loans in August, but sold or liquidated $50.4 billion, causing its mortgage portfolio balance to shrink at an annualized rate of 5.5% in August, according to its monthly volume summary report.
The agency reduced its portfolio by $9.1 billion to $1.99 trillion in August. The portfolio contracted $14.6 trillion in July. Freddie continues its mandated action toward shrinking its presence in the mortgage market after reducing its portfolio at an annualized rate of 8.7% in July and 2.5% in June.
Freddie modified 7,817 loans in August, up from 6,778 modifications in May. It has modified 43,414 loans in 2012.
The unpaid principal balance on the agency’s mortgage-related investment portfolio rests at $573.4 billion, falling about $3 billion in the month after a $5 billion decrease in July.
Seriously delinquent single-family mortgages shrunk to 3.36% in August from 3.42% in July, according to Freddie's report. The multifamily delinquency rate stayed flat at 0.29% in the same period.
Single-family refinance-loan purchase and guarantee volume was $29.2 billion in August, representing 71% of total mortgage portfolio purchases and issuances. The agency said its measure of our exposure to changes in portfolio market value averaged $253 million in August, with a duration gap averaging one month.