Fannie's MBS Issuance Rises

Fannie Mae issued $69.4 billion in mortgage-backed securities in February, up from $49.1 billion in January and $41.7 billion in February of 2007. The mortgage giant's monthly report also indicates that the serious delinquency rate on its conventional single-family portfolio hit 1.06% in February, up 8 basis points from that of the previous month. Fannie executives have been warning investors to expect rising delinquencies and defaults this year. But they also project that tighter underwriting and higher fees will make their MBS business very profitable. The government-sponsored enterprise recently received regulatory approval to expand its investment portfolio again, along with a reduction in its capital requirements. This might stir more investment activity in the coming months. The mortgage portfolio totaled $724 billion in February and has hovered between $710 billion and $730 billion for over a year. Fannie can be found online at http://www.fanniemae.com.