Fannie Mae acquired $95.3 billion of mortgages from its seller/servicers in March, a stunning 53% jump from the month prior, and a performance a source close to the company attributed to recent guarantee fee hikes.
The source had no other color on the huge purchase volume, which marks Fannie Mae’s best acquisition month in almost three years.
If the number isn’t restated, it likely will result in a huge revenue boost for the GSE which is slated to report earnings in the next week or two.
Although Fannie’s monthly purchases soared, its cross-town competitor, Freddie Mac managed to grow March purchases (compared to February) by a modest 13%.
Congress passed a 10 basis point GSE guarantee fee hike last year as part of a deal to extend the payroll tax holiday. The increase, effective April 1, 2012, lasts for 10 years unless changed by Congress.
In January Bank of America said it would stop selling new originations to Fannie, a move that initially caused Fannie’s purchases to fall slightly. (B of A is no longer a top-ranked funder so its decision to quit Fannie won’t have dire ramifications for the GSE.)
Fannie released its new purchase figures Tuesday morning. It also reported that serious delinquencies in its book of business declined to 3.67% from 3.82% in February.
Fannie issued $89 billion of MBS in March compared to $56 billion in February and $54 billion in March 2011.
