Freddie Boosts Purchase Commitments

In restocking its portfolio, Freddie Mac agreed to purchase $40.4 billion in mortgage assets in June -- its largest mortgage purchase commitment in four years.The mortgage giant has allowed its portfolio to shrink since entering into a voluntary agreement with its regulator last August to cap the portfolio until its accounting systems and internal controls are fixed. Freddie Mac's monthly volume report for June shows that the portfolio could hold another $21.3 billion in mortgage assets and still be in compliance with the $724.5 billion cap, which is calculated quarterly under generally accepted accounting principles. "We have plenty of room to grow," Freddie spokesman Michael Cosgrove said. The retained portfolio grew at a 1.2% annual rate in June to an unpaid principal balance of $712.1 billion. Freddie also reported that it issued $232.4 billion in guaranteed mortgage securities during the first six months of this year, compared with $185.5 billion in the last half of 2006. Freddie Mac can be found online at http://www.freddiemac.com.