Fannie Mae's Mortgage Portfolio Down 10.6% in 2012

By: Jann Swanson •

Fannie Mae said on Thursday that its Book of Business declined at a compound annual rate of 4.8 percent in December to a value of $3.19 trillion compared to $3.20 trillion in November.  The Book grew 0.2 percent during 2012 from $3.18 trillion at the end of 2011.

The company's mortgage portfolio had a year-end balance of $633.05 billion.  This was composed of $371.71 billion in mortgage loans, $12.32 billion in Non-Fannie Mae Agency securities, and $65.06 billion in Non-Fannie Mae Non-Agency securities for a total of $633.05 billion.

The mortgage portfolio decreased from November to December at an annualized rate of 1.0 percent. This reflected purchases of $30.66 billion against sales of $19.07 billion, and liquidations of $11.05 billion.   For the entire year Fannie Mae posted purchases of $288.34 billion, sales of $244.21 billion, and liquidations of $139.49 billion resulting in a decrease of 10.6 percent from a gross portfolio of $708.4 billion at the end of 2011. 

Fannie Mae issued a total of 67.59 billion in mortgage-backed securities in December and 865.5 billion in all of 2012.  The annualized liquidation rate was 35.99 percent for the month and 30.68 percent for the year for a year-end balance of $2.71 trillion. 

The Effective Duration Gap on Fannie Mae's portfolio averaged zero months in December as it has for the entire year.

Fannie Mae's Conventional Single-Family Serious Delinquency Rate fell from 3.30 percent in November to 3.29 percent in December and was down 61 basis points from the rate in December 2011.  The non-credit enhanced delinquency rate in December was 2.70 percent compared to 3.07 percent one year earlier but unchanged from November.  The rate for credit enhanced   loans was 7.09 percent compared to 7.12 percent in November and 9.10 percent in December 2011.  The serious delinquency rate for multi-family mortgages was down one basis point from November to 0.24 percent.  The rate in December 2011 was 0.59 percent. 

Fannie Mae completed 12,095 loan modifications in December and 163,412 in 2012.

Here is the full report.