Freddie Loan Purchases Off 26% in July

Freddie Mac’s purchases of mortgage loans fell 26% in July from the prior month, which could indicate the pace of HARP refinancings slowed considerably in July.

The secondary market agency reported Friday morning that it purchased $32.5 billion in loans from mortgage lenders in July, down from $44.1 billion in June.

Refinancing volume totaled $23.1 billion, representing 71% of total loan purchases.

In its June report, Freddie Mac said loan purchases were bolstered by $8 billon in HARP refinancings. In Friday’s report, the GSE did not mention the Home Affordable Refinancing Program.

Overall, Freddie purchased 64,700 HARP refis in June, up from 27,500 in May, according to a report by the GSE regulator.

Freddie also reported Friday that it issued $34.7 billion in MBS in July down, 24% from June.

On June 1, Freddie started securitizing HARP 2.0 loans with loan-to-value ratios greater than 125% for the first time and deliveries of those high LTV loans skyrocketed.

The GSE regulator said Freddie purchased 33,000 of those HARP 2.0 loans with LTVs above 125% in June, up from 960 loans in May.