Refinance Loans Continue to Dominate Freddie Mac's Volume

By: Jann Swanson •

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 27.2 percent in March compared to a 17.7 percent gain in February. The portfolio balance at the end of the period was $2.927 trillion compared to $2.882 trillion the prior month and $2.404 trillion a year earlier.

Purchases and Issuances totaled $142.465 billion, and Sales were ($.785) billion. The February  numbers were $114.682 billion and ($.460) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $103.3 billion in March compared to $85.0 billion in February, representing a 76 percent share of total single-family mortgage portfolio purchases and issuances, down from 77 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $114.725 billion for the month compared to $89.841 billion during the prior period. Liquidations were ($1.475) billion and ($1.447) billion for March and February, respectively and Sales for the two periods were ($103.806) and ($95.755) billion. The ending balance in the portfolio was $174.456 billion, compared to $165.012 billion in February and $211.197 billion in March 2020.

The Mortgage Related Investments portfolio increased at an annualized rate of 68.7 percent compared to a decrease of 51.2 percent a month earlier and 53.4 percent in March 2020.

The $174.456 billion ending balance of the Mortgage Related Investments Portfolio was composed of $58.626 billion in Agency Securities, Mortgage Loans valued at $114.451 billion, and Non-Agency Securities at $1.379 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 22.7 percent in February compared to 17.8 percent in January. 

Freddie Mac's single-family delinquency rate decreased from 2.52 percent in February to 2.34 percent in February. The multi-family delinquency rate increased 3 basis points to 0.17 percent.   

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $66 million in March compared to $103 million in February. Maximum exposure to Fannie Mae-issued collateral that was included in Freddie Mac-issued resecuritizations was approximately $93.7 billion, up from $91.4 billion in January.