Last week, Freddie Mac released its December monthly volume summary and as expected, the GSE reported a drop in its retained portfolio as well as a modest increase in its guaranty business. Analysts believe that Freddie Mac is well positioned to take advantage of the more attractive spreads on nontraditional products, although MBS-to-debt spreads are still tight.
Freddie disclosed that its total mortgage portfolio grew at an annualized rate of 7.2% in December. However, its retained portfolio dropped by an annualized 6.1% rate compared to the previous month, attributed to the continuously high liquidations, as well as securities sales. Also, retained portfolio purchases dropped slightly to $18 billion from $18.8 billion in November.