Freddie's Portfolio Rises to Record Level

Freddie Mac purchased nearly $35 billion in guaranteed mortgage-backed securities in May, and the size of its mortgage investment portfolio jumped to a record level of $770.4 billion. The government-sponsored enterprise purchased $20.2 billion of Freddie-guaranteed MBS in May and $14.7 billion of MBS guaranteed by Fannie Mae and Ginnie Mae in providing liquidity for the mortgage market and taking advantage of attractive investment opportunities. Freddie's portfolio jumped from $737.5 billion in April to $770.4 billion in May through the purchase of $46.1 billion in MBS and mortgage loans. The Office of Federal Housing Enterprise Oversight capped the growth of Freddie's portfolio in the summer of 2006 when the portfolio held $711.0 billion in mortgage investments, but OFHEO removed the cap on March 1. Freddie Mac can be found online at http://www.freddiemac.com.