Freddie's Portfolio Shrank in May

Freddie Mac has reported that its retained mortgage portfolio declined by $700 million, to $723.1 billion, in May.The government-sponsored enterprise is under intense pressure from the Bush administration and regulators to slow the growth of its portfolio while it fixes its accounting and internal control systems. So far this year, Freddie has increased the size of its portfolio by 4.4%, whereas last year the portfolio grew by 9%. Meanwhile, Freddie Mac's issuance of mortgage-backed securities slowed in May to $25.4 billion from $26.6 billion in April -- probably reflecting an overall decline in mortgage originations. In January, Freddie issued $33.7 billion in MBS.