NEW YORK, June 29 Fannie Mae FNM.N FNM.P
said its gross mortgage portfolio grew at a 35.1 percent annual
rate in May, after a 19.2 percent drop in April, while the
serious delinquency rate on loans it guarantees accelerated.
Mortgage holdings of the largest U.S. home funding company
rose to $789.6 billion from $770.1 billion the prior month and
from $787.3 billion at the end of last year, Fannie Mae said on
The capital-constrained company, which the government took
over along with Freddie Mac FRE.N FRE.P in September 2008,
can expand its portfolio to $900 billion before starting to
reduce it next year.
The rate of serious delinquent payments on single-family
mortgages that Fannie Mae guarantees jumped 27 basis points to
3.42 percent in April, the latest data available. A year
earlier, the rate was 1.22 percent.
On the multifamily side of the business, the serious
delinquency rate rose 2 basis points to 0.36 percent, four
times the 0.09 rate a year earlier.
The company said its mortgage refinance volume rose to $57
billion in May and that it should stay above historical norms
for the near term.
Fannie Mae started accepting refinance mortgages under the
government's Making Home Affordable Program in April. "We
expect that the MHA Program will bolster refinance volumes over
time as major lenders adopt necessary system changes and
consumer awareness continues to build," the company said in its
Fannie Mae provided $71.6 billion of liquidity to the
market in May through $67.7 billion of mortgage-backed
securities issuance, excluding whole loan securitizations held
in the portfolio, and $3.9 billion in net retained commitments
It securitized $61.4 billion of whole loans held for
investment in its portfolio in May.
On Friday, Freddie Mac FRE.N FRE.P said it reduced its
mortgage investments by an annual 9.9 percent rate in May to
$823.4 billion. Single-family delinquencies rose to 2.62
percent, more than triple the 0.86 percent a year earlier.
(Reporting by Lynn Adler; Editing by Kenneth Barry)