Fannie Ends Strong Year Despite December Decline in Loan Purchases

Strong demand for refinancings pushed up Fannie Mae’s loan purchases and MBS issuance last year by 40% compared to 2011.

The secondary market agency reported late Thursday that loan purchases totaled $918.4 billion in 2012 and it issued $865.5 billion in MBS last year.

However, loan purchases fell 17.5% from November to $71.9 billion in December. And MBS issuance fell to $67.6 billion, down 37% from November.

But November was a very active month for Fannie. Loan purchases hit $99.2 billion in November, the highest level since the refinancing boom of 2009 when the Federal Reserve first started purchasing agency MBS. And MBS issuance totaled $107.8 billion in November.

Thursday’s report also shows the serious delinquency rate on Fannie’s single-family loan portfolio fell one basis point from November to 3.29% in December.

The percentage of Fannie-guaranteed loans that are 90 days or more past due is down 62 bps since December 2011.

In 2012, Fannie servicers completed 163,400 loan modifications, including 12,100 in December.