Freddie Mac's monthly volume summary for November revealed a second month of sizeable growth in its retained portfolio — not surprising given its placement in conservatorship and the government's goal of reducing mortgage rates for borrowers.

The retained portfolio surged an annualized 65.6% resulting in an ending balance of $805.4 billion. This follows a 43.6% growth in November to $763.7 billion. Based on the agreement with the government, the GSEs portfolios can reach $850 billion by the end of 2009, after which they will be required to reduce this by 10% annually.

The increase came primarily on PCs and structured securities holdings which jumped $32 billion. Other components of the retained portfolio — non-Freddie Mac agency holdings and mortgage loans — increased $9.8 and $2.4 billion, respectively, while non-Freddie Mac non-agency holdings declined $2.4 billion.

Other details included in Freddie's monthly volume summary are highlighted below.

* Retained net purchases totaled nearly $15 billion compared to $17 billion in the previous month.

* Total Freddie Mac MBS issuance was $14.5 billion in November compared to $13.8 billion in October. After liquidations, issuance was -$4.6 billion versus $3.2 billion previously.

* Freddie Mac reported a 2.8% annualized increase in the total mortgage portfolio. Year-to-date growth is 5.1%.

* Total delinquencies rose 18 basis points to 152 basis points in November, and is up 92 basis points from a year ago.

* The effective duration gap remained at 0 months.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.