Freddie Mac: Portfolio is Growing

Freddie Mac reported today that its total mortgage portfolio increased at an annualized rate of 1.8 percent in July.  The portfolio balance at the end of the period was $2.044 trillion compared to $2.041 trillion at the end of June and $1.966 trillion at the end of July 2016.

Purchases and Issuances totaled $32.561 billion, Sales ($1.516 billion) and Liquidations ($28.003) billion.  The annualized growth rate for 2017 through the end of July was 2.8 percent and the liquidations rate was (15.1) percent. 

Single-family refinance-loan purchase and guarantee volume was $8.8 billion, representing 32 percent of total mortgage portfolio purchases or issuances.  Relief refinance mortgages comprised approximately 6 percent of the total refinance volume in July based on unpaid principal balance.

The Mortgage Related Investments Portfolio had an ending balance of $276.835 billion, a decrease of 29.0 percent from June.  The annualized growth rate for the portfolio for the year to date is (12.4) percent, a decrease of $6.9 billion in the aggregate unpaid principal balance.  Freddie Mac had purchases of $20.356 billion for the month and $144.801 billion for the year through the end of July.  Liquidations in July were ($4.114) billion and Sales were ($23.093) billion and for the year ($29.333) billion and ($137.058) billion respectively. 

The ending balance of the Mortgage Related Investments Portfolio was composed of $133.050 billion in Mortgage Related Securities, Mortgage Loans valued at $118.785 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $15.443 billion, and Agency non-Freddie Mac Mortgage related securities of $9.557 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 4.0 percent in July compared to 4.7 percent in June

Freddie Mac's single-family delinquency rate remained flat at 0.85 percent in July and was down from 1.08 percent a year earlier. The multi-family delinquency rate was 0.01 percent, unchanged from June but 0.01 point lower than the previous July.

The company said it completed 3,503 loan modifications in July and 27,645 during the first seven months of 2017.