Fannie Mae’s Gross Mortgage Portfolio Dips Below $4 Billion

fanniemaeFannie Mae‘s gross mortgage portfolio experienced its second consecutive month of double-digit contraction as its value fell below $4 billion, according to Fannie Mae’s May 2015 Monthly Volume Summaryreleased Tuesday.

In May, the GSE’s gross mortgage portfolio shrank at a compound annualized rate of 25.9 percent, from $405.1 billion down to $395.1 billion.  It was the first time since before the conservatorship began in September 2008 that the value of the gross mortgage portfolio dipped below $4 billion. In April, the portfolio contracted at an annualized rate of 17.4 percent after March’s expansion of 7.8 percent. March’s expansion was a rare one for Fannie Mae’s gross mortgage portfolio in the last five years; the portfolio has expanded only three times in the last 59 months dating back to June 2010 (March 2015, January 2015, and December 2012).

The gross mortgage portfolio’s value for May ($395.1 billion) is less than half of what it was in June 2010 ($818 billion). The portfolio’s value has declined by more than $16 billion just since March 2015, when it totaled $411.7 billion.

Fannie Mae’s Book of Business also declined in May, decreasing at a compound annualized rate of 2.6 percent for the month. The value of the Book of Business was $3.110 trillion following the May contraction. The Book of Business, which includes the gross mortgage portfolio plus the total Fannie Mae mortgage-backed securities and other guarantees less the Fannie Mae mortgage-backed securities in the portfolio, has contracted in four of the first five months of this year and has decreased at an average compound annualized rate of 1.1 percent this year.

The total value of Fannie Mae’s mortgage-backed securities and other guarantees for May was $2.8099 trillion, a slight decline from April’s level of $2.8105 trillion. The end balance of mortgage-backed securities in the portfolio as of May 31, 2015, was $94.990 billion, down from $98.693 billion in April.

The single-family serious delinquency rate for Fannie Mae in May fell another three basis points down to 1.70 percent, its lowest point since before the recession. The single-family serious delinquency rate has declined every quarter since Q1 2010 for Fannie Mae.

Also according to May’s monthly volume summary, Fannie Mae completed 8,597 loan modifications in May, a decline from the 9,297 loan mods completed in April. Fannie Mae has completed 44,558 loan mods for the first five months of 2015, an average of 8,911 per month. For the full year of 2014, Fannie Mae completed 122,823 loan mods, a monthly average of 10,235.

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