How much has changed from the prior month?
The Federal National Mortgage Association (Fannie Mae) has released its monthly summary for August 2023.
Its monthly summary reports include information about Fannie Mae’s activities for its gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, and serious delinquency rates.
How did Fannie Mae fare in August 2023?
Fannie Mae’s guaranty book of business, which included its MBS outstanding, credit enhancements that it provided on mortgage assets, and mortgage loans that it held in its retained mortgage portfolio, increased with a compound annualized rate of 1.3%. This was a slight increase from July’s 1.1%.
Serious delinquency rates, the measure of credit performance as well as an indicator of potential future defaults for single-family and multifamily guaranty books, were slower than in July.
The conventional single-family serious delinquency rate, loans that were either past due for 90 days or more, or were in the process of foreclosure, continued its downward trend as it decreased one basis point to 0.53% - it was at 0.54% in the previous month.
After seeing a significant increase in July, the multifamily serious delinquency rate, loans that were past due from 60 days or more, remained flat in August at a rate of 0.47%.
Fannie Mae’s maximum exposure to Federal Home Loan Mortgage Corporation (Freddie Mac) collateral that was included in outstanding Fannie Mae re-securitizations, which represented the amount of Freddie Mac securities that were guaranteed by Fannie Mae, was $220.9 billion – a decrease from the $222.6 billion in July.
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