Fannie Reports Slowdown in Loan Purchases, But Commitments Soar
Fannie Mae purchased $79.4 billion of loans from its seller/servicers in October, down almost 11% from the month prior, according to new figures released by the GSE.
Meanwhile, its MBS issuance fell more dramatically—by 27% to $62.7 billion.
However, Fannie Mae reported forward commitments (a barometer of future activity) of $96.7 billion, the highest reading in over three years.
The last time the GSE had commitments this high came in July 2009 when the reading was $103.6 billion. But it didn’t signal a surge in actual purchases going forward. Purchases declined over the next three months in 2009.
Fannie also reported that the serious delinquency rate on its single-family loan portfolio fell six basis points from September to 3.36% in October. Four-percent of Fannie’s guaranteed loans were 90 days or more past due in October 2011.
Freddie Mac reported a similar 6 basis point drop in October. Freddie currently has a 3.31% serious delinquency rate.