Fannie Mae Shows Growth in January

Fannie Mae's mortgage portfolio increases 5 percent amid overall drop

Fannie Mae Shows Growth in January
March 3, 2016

During the month of January, Fannie Mae’s portfolio of gross mortgages actually grew following nine months of continued contraction. The portfolio saw an increase of 5 percent. The result was an additional $1.4 billion added to the unpaid principal balance of the loans overseen by Fannie Mae, bringing their total to around $346.5 billion.

During most of 2015, the portfolio saw a decrease in compound annualized rates, and, overall, the year saw the portfolio contract at 16.5 percent. The increase is rarer than that, however: since June 2010, there have only been three months in which Fannie Mae saw growth: December 2012, January 2015 and March 2015. Prior to the beginning of that timeframe, the unpaid principal balance stood at $818 billion, a loss of approximately $471.5 billion dollars.

Despite this, the company’s total rate of seriously delinquent borrowers remained at 1.55 percent, the same as December. This number has remained steady since September 2008 when the FHFA took Fannie Mae into conservatorship. The company’s number of completed loan modifications also held steady between December and January.

While their mortgage portfolio may have shown growth, Fannie Mae’s overall book of business saw a decrease, dropping 0.9 percent in January. This book includes the mortgage portfolio and a number of other guarantees and mortgage-backed securities. At the end of January, the final value of the overall book was $3.1 trillion. Like the mortgage portfolio, the book contracted during most of 2015, seeing a decrease at a rate of 0.8 percent overall.

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