Freddie Mac’s Portfolio Increases 0.7% in October

Freddie Mac’s portfolio changes

Today, Freddie Mac reported its total portfolio increased at an annualized rate of 0.7 percent in October compared to 0.8 percent in September.  The total value of the portfolio decreased by 21.6% to $770.1 billion from $765 billion last year.

Freddie Mac purchased $9.19 billion in mortgages during the month, and the net amount of mortgage-related investment portfolio mortgage purchases was $1.66 billion, down from the $4.6 billion in purchases in September.

Mortgage lender Dan Green said, “Over the last 18 months, both Freddie Mac and Fannie Mae have been losing market to the FHA. However, all three are nationalized entities.  As taxpayers, therefore, we shouldn’t care so much about portfolio sizes as much as portfolio quality. The bad news here is the quality of Freddie Mac’s existing loans is worsening. Delinquencies are up month-over-month. However, 2009 vintage isn’t performing as poorly as prior years so that’s reason to be optimistic. ”