Loan Purchase Decline at Fannie Extends to Fifth Month

Fannie Mae's mortgage purchase activity fell for the fifth straight month in December to its lowest level in over two years.

The GSE reported Friday that it acquired $39.7 billion in mortgage from it seller/servicers, down 5.6% from the month prior. In December 2012, refinancings were hot and loan purchases totaled $72 billion.

Commitments to purchase new loans fell to $37.7 billion in December which is the lowest level since June 2011.

Overall, Fannie acquired $796.7 billion in mortgages from its lenders in 2013, down 13% from the prior year.

In November, Fannie's giant mortgage investment portfolio fell below $500 billion for the first time in over a decade. It fell to $490.7 billion in December. The GSE regulator has directed Fannie Mae and Freddie Mac to gradually reduce their giant portfolios. Back in 2010, Fannie’s portfolio exceeded $800 billion.

Meanwhile, the serious delinquency rate on Fannie's guaranteed single-family portfolio fell to 2.38% in December, down 91 basis points over the previous 12 months.

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