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Fannie Mae’s Mortgage Portfolio Continues to Shrink

fannie-maeFannie Mae's gross mortgage portfolio declined for the 51st time in the last 52 months in October, according to the mortgage giant's October 2014 Monthly Summary.

The balance of Fannie Mae's gross mortgage portfolio stood at $436.2 billion at the end of October, representing a compound annualized rate decline of 5 percent from September, according to the summary. With the exception of December 2012, when the portfolio grew in value at a compound annualized rate of 1 percent, the value of the portfolio has declined every month since June 2010. At the end of that month nearly four and a half years ago, the portfolio's value was almost $818 billion.

Year-to-date in 2014, the portfolio has declined at an average annualized rate of 13.2 percent.

Fannie Mae's total book of business components also declined in October after seeing its first increase of 2014 in September, according to the summary. The book of business decreased at a compound annualized rate of 0.9 percent, down to nearly $3.2 trillion. The book of business has declined in 10 out of the last 11 months and has declined at an average compound annualized rate of 1.8 percent year-to-date.

Also in October, the serious delinquency rate on Fannie Mae's conventional single-family mortgage loans declined by four basis points from September down to 1.92 percent, according to the summary. October marked the 35th month in a row the serious delinquency rate declined at least one basis point month-over-month; the last time the rate did not decline was when it held steady at 4.0 percent from October to November 2011. The rate has not increased since January to February 2010, when it jumped from 5.52 percent up to 5.59 percent.

The value of Fannie Mae's mortgage-backed securities and other guarantees totaled nearly $2.8 trillion in October, representing an annualized compound growth rate of 1.0 percent from the previous month, according to the summary.

Fannie Mae completed 9,540 loan modifications in October and has completed 106,455 loan modifications year-to-date as of October 31, 2014.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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