Freddie Mac's 12-Month Portfolio Growth Nears Half Trillion

By: Jann Swanson •

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 16.1 percent in January compared to a 22.4 percent gain in December. The portfolio balance at the end of the period was $2.777 trillion compared to $2.740 trillion the prior month and $2.339 trillion a year earlier.

Purchases and Issuances totaled $120.128 billion and Sales were ($.588) billion. The December  numbers were $129.639 billion and ($1.330) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $84.5 billion in January compared to $77.6 billion in December, representing a 73 percent share of total single-family mortgage portfolio purchases and issuances, up from 70 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $92.263 billion for the month compared to $111.509 billion during the prior period. Liquidations were ($1.650) billion and ($1.924) billion for January and December respectively and Sales for the two periods were ($100.425) and ($120.351) billion. The ending balance in the portfolio was $172.372 billion, compared to $182.184 billion in December and $202.175 billion in January 2020.

The Mortgage Related Investments portfolio declined 64.6 percent compared to a decrease of (67.0) a month earlier. The annualized growth in January 2020 was (59.2) percent.

The ending balance of the Mortgage Related Investments Portfolio was composed of $59.478 billion in Mortgage Related Securities, Mortgage Loans valued at $108.806 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.400 billion; and Agency non-Freddie Mac Mortgage related securities of $2.688 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 17.8 percent in January compared to 25.9 percent in December. 

Freddie Mac's single-family delinquency rate decreased from 2.64 percent in December to 2.58 percent in January. The multi-family delinquency rate was unchanged at 0.16 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $17 million in January compared to $72 million in December. Maximum exposure to Fannie Mae-issued collateral that was included in Freddie Mac-issued resecuritizations was approximately $89.7 billion.