Fannie Posts Volume Growth

Lower interest rates and a shift toward conforming lending helped Fannie Mae generate solid business growth in December.

The company said its total book of business increased at a 24.7% annualized rate in December. Fannie Mae MBS and other guarantees grew at an annualized rate of 27.1% and MBS issuance totaled $64 billion in December.

Its retained portfolio grew at a smaller pace, increasing at a 3.3% annualized rate in December.

Fannie Mae's conventional, single-family serious delinquency rate climbed seven basis points month-over-month to 0.9% in November, the most recent moth for which delinquency data is available. The multifamily serious delinquency rate rose one basis point to 0.08%.

Fannie Mae said the ARM share of its conventional mortgage applications fell by almost five percentage points to 10.1% in December, the lowest such share since November 2001.

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