Fannie Maereleased its Monthly Summary report for September earlier today. It showed a 2.1% decline in its retained portfolio, which improved from a 7.3% contraction in August. Year-to-date, the retained portfolio is down 0.4% with an ending balance of $725.5 billion. For purposes of Fannie Mae's consent order with Office of Federal Housing Enterprise Oversight, it estimates its "mortgage portfolio" of assets to be approximately $723 billion.
In a related event, Freddie Mac reported Tuesday that its retained portfolio contracted 7.7% in September, following negative growth rates in August and July of 6.8% and 18.6%, respectively. Year-to-date, the retained portfolio has declined 1.4% and stands at $702.4 billion. For purposes of their agreement with the OFHEO, Freddie Mac estimates the total retained mortgage portfolio at just under $700 billion as of the end of September
Other data from Fannie Mae's report include the fact that its book of business annualized growth rate more than doubled in September from August to 15.4%. For the year, growth is running at 7.7%.Also, portfolio purchases were $20.2 billion compared to $15.9 billion previously. Portfolio sales were $9.7 billion, up from $8.9 billion in August. Finally, portfolio liquidations were $11.9 billion, similar to the previous report.
Fannie Mae's net retained commitments increased to $10.4 billion from $6.8 billion. In comparison, rival Freddie Mac's Retained Net Mortgage Purchases Agreements entered into totaled $15.3 billion versus $3.3 billion previously.
Fannie issuance was $47.0 billion compared to $37.6 billion in August. To compare, Freddie Mac issuance of PCs and structured securities totaled $30.6 billion in September, down from $31.9 billion in August.
Holdings of Fannie Mae securities continue to fall. They were $310 billion in September, down from $321 billion. As a percentage of the portfolio, FNMA securities represent 42.7%, leaving non-Fannie Mae holdings at 57.3%. For Freddie Mac, 50.5% of its portfolio is in Freddie securities.
Fannie Mae reported a one basis point improvement in delinquencies (90 days or more) for August to 60 basis points. The duration gap of the portfolio was 0 months in September versus -1 month in the last report.
Freddie Mac's total mortgage portfolio experienced an annualized growth rate of 5.1% in September, and has increased 8.1% year-to-date. Other items that Freddie Mac reported was that delinquencies on non-credit enhanced single-family loans held at 22 basis points, unchanged from in June and July. Meanwhile, the duration gap remained at zero months.