GSE Loan Purchases Fall

Loan purchases by Fannie Mae and Freddie Mac fell in October as rising rates and a decline in refinancings continued to slow conventional fundings in the primary market.Freddie Mac bought $34.4 billion in mortgages during the month, a 56% decline from the total in the same month last year. October was Freddie's second-worst purchase month of the year. The congressionally chartered company also revealed that it unwound $1.52 billion in participation certificates (mortgage-backed bonds) with an unidentified seller/servicer. The liquidations occurred in February ($735 million) and October ($785 million). Meanwhile, Fannie Mae acquired $61.8 billion in October, a 38% decline from purchases in the same month a year ago. It was Fannie's fifth-best purchase month of the year. In October, Freddie's portfolio fell slightly (compared with the previous month's level), while Fannie's increased. The government-sponsored enterprises can be found online at http://www.fanniemae.com and http://www.freddiemac.com.