In its new monthly report, Fannie says its portfolio grew slightly to $817.8 billion with the addition of $19 billion in delinquent loans that it bought out of MBS pools.
The government sponsored enterprise also reported that the serious delinquency rate on its guaranteed single-family mortgages fell for the third consecutive month.
Fannie said 5.15% of its loans are 90 days or more past due in May, down 44 basis points since February. (Fannie has a one-month delay in reporting delinquency rates.)
Fannie economists recently revised downward their forecast for single-family originations after seeing disappointing home sales. Fannie now believes 2Q production (purchase money loans and refis) will total $404 billion, down from $451 billion in its June forecast.
For the full year, Fannie expects mortgage bankers to fund $1.4 trillion of residential loans with refinancings accounting for 56% of loan transactions.
