Fannie's 'Serious' Delinquency Rate Breaks 4%

The serious delinquency rate on Fannie Mae guaranteed single-family loans topped 4% in July, according to mortgage giant's monthly summary report. The percentage of Freddie loans 90 days or more past due and in foreclosure hit 4.17% in July, up 23 basis points from June. A year ago, the government sponsored enterprise had a 1.45% serious delinquency rate. Freddie Mac recently reported that it has a 3.13% serious delinquency rate. In its second quarter financial report, Fannie said default rates are increasing across its entire guaranty book of business and the serious delinquency rate on its $270 billion Alt-A portfolio hit 11.9% as of June 30. The Alt-A portfolio includes $195.9 billion interest-only loans and $15.4 billion of payment option ARMs. Fannie's monthly report also shows that the GSE issued $62.1 billion in mortgage-backed securities in August, down 22% from July. Fannie has a one-month lag in reporting its delinquency rate. Freddie's 3.13% delinquency rate is for August.