GSE MBS Issuance Mixed in March

Issuance of mortgage-backed securities by Fannie Mae fell to $50.1 billion in March, down 28% from the previous month's volume, while MBS issuance by Freddie rose slightly to $43.5 billion, according to the secondary-market agencies. Their monthly activity reports show little growth in their $720 billion mortgage investment portfolios. However, delinquencies continued to creep up in February (March delinquency data are not yet available) in their guaranteed book of single-family loans. Fannie reported that 3.04% of its loans with private mortgage insurance or other credit enhancements were behind by three or more monthly payments in February, up from 1.84% in February 2007. Including loans with no credit enhancements, Fannie's serious delinquency rate stood at 1.10%, up from 0.66% in February 2007. Freddie reported a 1.78% serious delinquency rate for February on loans with private MI and other credit enhancements, up from 1.18% in March 2007. Its overall serious delinquency rate is 0.74%, up from 0.40% in March of last year.