The April summary report from government-sponsored enterprise (GSE) Freddie Mac (FRE) demonstrates the balance sheet focus on assimilating delinquent loan purchases at the expense of profits, according to e-mailed commentary. The aggregate unpaid principal balance of Freddie's mortgage-related investments portfolio grew by $3.9bn in the month, due to delinquent mortgage buyouts from Participation Certificate (PC) pools first announced in February. The total portfolio size is back to year-end 2009 levels, but securities holdings are down $61bn to accommodate the loan purchases. Net production of Freddie pass-throughs this year -- including the effect of the buy backs -- is flat, according to Jim Vogel, a strategist at FTN Financial, a financial services provider for the investment and banking community. "There is no visible return to a 'for profit' management of the securities portfolio, and we would not expect it to return until mid-third quarter at the earliest," Vogel writes. Additionally, he notes it is unlikely Freddie or sister GSE Fannie Mae (FNM) will greatly increase their portfolio holdings of Ginnie Mae, which continues to gain net issuance market share as the GSEs maintain slightly higher credit standards than in 2009. The April figures on Freddie's delinquent buy-backs followed Q110, in which Freddie saw $1.3bn of loans repurchased by lenders due to the loans' failure to meet the GSE's standards. A hearing on GSE oversight is scheduled for tomorrow at 2 p.m. eastern in the House Financial Services subcommittee on capital markets, insurance and GSEs. Federal Housing Finance Agency (FHFA) acting director Ed DeMarco is slated to testify. Write to Diana Golobay. Disclosure: the author holds no relevenat investments.