Loan Purchases at Fannie Keep Rocking, Freddie Not So Much

Although Freddie Mac had a weak purchase month in July, its cross-town competitor, Fannie Mae, acquired $77.1 billion of product from its seller/servicers, almost double what it took in a year ago.

Compared to June, its secondary market acquisitions rose 9%.

Moreover, Fannie’s pipeline continues to expand. The GSE signed $82 billion of commitments to purchase loans for its lenders in July—up just $200 million from June but still the highest level of commitments in two years.

Fannie said it issued $73 billion of in MBS in July, up 9% from the month prior.   

The serious delinquency rate on its loan portfolio fell three basis points to 3.5%. The percentage of loans 90 days or more past due has fallen 58 bps since July 2011.

In July Freddie Mac’s purchases of mortgage loans fell 26% from the prior month, which could indicate the pace of HARP refinancings is beginning to slow.