Refis Constituted Three-Quarters of Freddie Mac's February Volume

By: Jann Swanson •

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 17.7 percent in February compared to a 16.1 percent gain in January. The portfolio balance at the end of the period was $2.818 trillion compared to $2.777 trillion the prior month and $2.350 trillion a year earlier.

Purchases and Issuances totaled $116.362 billion, and Sales were ($1.174) billion. The January  numbers were $120.128 billion and ($.588) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $85.0 billion in February compared to $84.56 billion in January, representing a 77 percent share of total single-family mortgage portfolio purchases and issuances, up from 73 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $89.841 billion for the month compared to $92.263 billion during the prior period. Liquidations were ($1.447) billion and ($1.650) billion for February and January, respectively and Sales for the two periods were ($95.755) and ($100.425) billion. The ending balance in the portfolio was $165.012 billion, compared to $172.372 billion in January and $202.195 billion in February 2020.

The Mortgage Related Investments portfolio declined to 51.2 percent compared to a decrease of 64.6 a month earlier. The annualized growth in February 2020 was negligible at 0.1  percent.

The ending balance of the Mortgage Related Investments Portfolio was composed of $58.441 billion in Mortgage Related Securities, Mortgage Loans valued at $101.561 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.389 billion; and Agency non-Freddie Mac Mortgage related securities of $3.621 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 21.3 percent in February compared to 17.8 percent in January. 

Freddie Mac's single-family delinquency rate decreased from 2.56 percent in January to 2.52 percent in February. The multi-family delinquency rate declined 2 basis points to 0.14 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $103 million in February compared to $17 million in January. Maximum exposure to Fannie Mae-issued collateral that was included in Freddie Mac-issued resecuritizations was approximately $91.5 billion, up from $89.7 billion in January.