Freddie Mac signals end to rapid portfolio growth
NEW YORK (Reuters) - Freddie Mac, the second-largest provider of funding for U.S. mortgages, on Tuesday said its portfolio of investments surged to a record in July, but signaled future growth may slow.
The portfolio in July rose to $798.2 billion from $791.8 billion in June, the McLean, Virginia-based company said in a statement. Its purchase and sales agreements for future months turned abruptly from the past five months, falling to negative $324 million in the month from $34.7 billion in June.
It also said the delinquencies that have increased stress on its capital jumped to 1.01 percent of its book of business in June from 0.93 percentage points in May.
Freddie Mac earlier this month reported its fourth straight quarterly loss and said it will be more conservative in managing its capital in coming months, including reducing purchases of loans and mortgage bonds for its portfolio. The portfolio has surged from $712 billion in March.
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