Along with increased business volume for the third month in a row, Fannie Mae also reported slightly improved delinquency rates on its mortgage portfolio.
The secondary lender announced last month's business volume totaled $74.6 billion, which is up slightly from April's $73.8 billion. However, the figure is way off the $129.0 billion reported a year ago when mortgage rates were approaching record lows.
May's business volume consisted of $47.9 billion in mortgage-backed securities (MBS) acquired by others and portfolio purchases of $26.7 billion, the Washington, D.C.-based company reported.
Fannie's $2.2 trillion book of business consisted of a $0.9 trillion gross mortgage portfolio and $1.3 trillion in outstanding MBS.
The mortgage portfolio's duration gap reportedly averaged positive three months, unchanged from April. A positive number indicates that incoming cash flows are stronger than outgoing payments.
The industry giant said the delinquency rate -- reported on a one-month lag -- for conventional single-family mortgages slipped two basis points from March to 0.56%, while for multifamily mortgages, it edged down one basis point to 0.16%.
Fannie's delinquency rate has reportedly not increased since the beginning of the year. That seems to be the case for the industry as well -- delinquencies lowered nationwide during the first quarter, according to the Mortgage Bankers Association of America.