Freddie Reports Loss of Market Share

Freddie Mac has reported that its total market share (vis-a-vis that of Fannie Mae) fell from 41% to 32% in the first quarter and its total mortgage portfolio declined at a 1% annualized rate.The report was made in lieu of a first-quarter earnings report, which is being delayed pending previously announced restatements of annual financial results for 2000, 2001, and 2002 and quarterly financial results for 2001 and 2002. The government-sponsored enterprise attributed its loss of market share primarily to "the implementation of higher fees and weak PC security price performance early in the quarter" and predicted that its market share would return to "more typical levels" over the remainder of the year. The GSE's retained portfolio grew by $1 billion during the quarter (a 1% annualized rate), while its total PC portfolio declined by $9 billion (a 3% annualized rate). Freddie Mac also reported that its non-credit-enhanced single-family delinquency rate stood at 0.30% at the end of February, and its multifamily delinquency rate was 0.01%. The pending financial restatements stem from the GSE's re-evaluation, in conjunction with its new auditor, PricewaterhouseCoopers, of certain former accounting policies. Freddie Mac can be found online at http://www.freddiemac.com.