Freddie CEO Sees Slower Portfolio Growth

The rapid growth of Freddie Mac's mortgage portfolio over the past 10 years is no longer "feasible," according to the company's top executive."You should expect a slowing in the rate of growth," a Freddie Mac spokeswoman said, confirming statements made by Freddie's chairman and chief executive, Richard Syron, in interviews with two newspapers. Over the past 10 years, Freddie Mac's portfolio has grown to $637 billion, fueling the government-sponsored enterprise's profitability. But its growth has also raised concerns about its financial risks. However, Freddie's portfolio has shrunk during the past five months and is down 5.5% since the beginning of the year. Fannie Mae's portfolio has also shrunk, but the company says it believes rising short-term interest rates will create a buying opportunity soon and restart the growth of its $881 billion mortgage portfolio.