December secondary activity up 23% from prior month

Jan. 26, 2017

By Mortgage Daily staff

In addition to pushing its book of business past $2 trillion, Freddie Mac lifted secondary mortgage activity to a four-year high and cut delinquency to an eight-year low.

The total mortgage portfolio at the Federal Home Loan Mortgage Corp. concluded 2016 at $2.0114 trillion -- surpassing $2 trillion for the first time since June 2012.

McLean, Virginia-based Freddie Mac's book of business was $1.9948 trillion as of Nov. 30, 2016. As of year-end 2015, the total portfolio was $1.9416 trillion.

The Dec. 31, 2016, total mortgage portfolio was comprised of an $0.2984 trillion investment portfolio and $1.7130 trillion in outstanding mortgage-related securities and other guarantees.

Purchases and issuances totaled $52.706 billion during December 2016 -- the strongest month since November 2012 when the total was $60.230 billion.

Secondary activity totaled $42.732 billion in November 2016 and $34.028 billion in December 2015.

Full-year 2016 activity amounted to $456.254 billion, climbing from $402.010 billion the prior year.

Freddie reported that 90-day single-family delinquency closed out 2016 at 1.00 percent -- the lowest rate since it was 0.93 percent as of June 30, 2008.

Serious mortgage delinquency was 1.03 percent as of Nov. 30, 2016, and 1.32 percent as of year-end 2015.

Multifamily delinquency of at least 60 days closed out last year at 0.03 percent, up from 0.01 percent a month earlier but off from 0.04 percent a year earlier.