Business Declines for Second Straight Month for Fannie Mae

""Fannie Mae's"":http://www.fanniemae.com/portal/index.html book of business shrank for the second consecutive month in July as its gross mortgage portfolio continued to decline, the company reported in its monthly volume summary.

According to Fannie Mae, the book of business shrank at a compound rate of 1.7 percent in July, slowing down slightly from June's rate of 1.9 percent. Year-to-date, the [COLUMN_BREAK]

book's average monthly growth rate was -1.1 percent as of July 31.

The book's value totaled approximately $3.169 trillion at the end of the month, down about $5 billion from June.

After slowing in June, the ongoing contraction in Fannie Mae's gross mortgage portfolio picked up speed, climbing to an annual growth rate of -32.4 percent. The last time the portfolio plummeted that quickly was January 2010, when the rate was -44.8 percent. Year-to-date through July, the portfolio's average monthly growth rate was -22.1 percent.

Meanwhile, new business acquisitions did a little better, edging up to $73.4 billion from June's $72.6 billion.

The Conventional Single-Family Serious Delinquency Rate was 2.70 percent in July, down seven basis points. The Multifamily Serious Delinquency Rate was 0.18 percent, a drop of 10 basis points.
Fannie Mae completed 11,870 loan modifications, bringing the year's total to 95,381.