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| Freddie Mac’s November new business purchases plunged to the lowest point this year.
Last month’s new business purchases of $44.5 billion shrunk 43% from $77.5 billion the previous month, said Freddie in its latest monthly summary of business activity. A year ago, purchases of $74.3 billion were reported. A retained portfolio of $646.6 billion and net mortgage participation certificates of $750.8 billion accounted for the total mortgage portfolio balance of nearly $1.4 trillion, according to the mortgage giant. Both the single family and multifamily loan delinquency rates for October were unchanged from the previous month’s figures of 0.75% and 0.01%, respectively, said Freddie. The figures are reported on a one-month lag. The government sponsored enterprise said the average duration gap in November also remained unchanged from the previous month at zero. Decreased business activity added to Freddie’s woes. Earlier this month, Freddie reported it agreed to implement corrective measures and pay a $125 million civil money penalty as part of a consent order with the Office of Federal Housing Enterprise Oversight, or OFHEO. The penalty resulted from the inappropriate conduct and improper management of earnings that led to Freddie’s recent financial restatement, said the OFHEO. |
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.
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