Late Tuesday Fannie Mae released its monthly summary for October. For the third month in a row the retained portfolio declined by 7.3%, compared to 2.1% in September and 7.3% in August. Year-to-date, the retained portfolio is down 1.1% with an ending balance of $720.9 billion. For purposes of its consent order with the Office of Federal Housing Enterprise Oversight (OFHEO), Fannie Mae estimated the mortgage portfolio balance is approximately $719 billion compared to $723 billion previously.
On Thanksgiving week, Freddie Mac released its monthly summary. After five straight months of contraction in its retained portfolio, the GSE reported a modest 3.4% gain in October. Year-to-date, the retained portfolio has shrunk 0.9% and stands at $704.4 billion. For purposes of Freddie Mac's agreement with the OFHEO, the GSE estimated its total retained portfolio at $702.5 billion in October, up from just below $700 billion in September.