Like its government-controlled cousin Freddie Mac, Fannie Mae reported two consecutive monthly increases in secondary acquisitions as monthly volume reached a 2010 high. But unlike Freddie, the secondary lender was able to grow its annual activity — to the highest level since 2003. Lates on home loans retreated, though apartment delinquency deteriorated.
The Washington, D.C.-based firm reported that it made $87.6 billion in new business acquisitions during December, rising for the second month in a row to the highest level of last year.
It was the same story at Freddie — which reported that it achieved its second monthly increase in purchases and issuances last month and reached its highest monthly volume of the year.
But while Freddie reported that its annual volume fell by a quarter, 2010 volume at Fannie was better. Fannie’s 12-month business volume rose to $855.5 billion from the $823.6 billion in new business acquisitions reported for 2009.
The last time business was this good was 2003 — when a refinance tsunami helped catapult U.S. mortgage originations to an all-time high and Fannie bought $1.421 trillion.
The total book of business at Fannie climbed to $3.2240 trillion from the previous month’s $3.2153 trillion and from $3.2407 trillion at the end of 2009.
The book included a gross mortgage portfolio of $0.7888 trillion and $2.4353 trillion in outstanding mortgage-backed securities.
Residential delinquency of at least three months, which is reported on a one-month delay, was 4.50 percent at the end of November, improving from 4.52 percent on Oct. 31 and 5.29 percent on Nov. 30, 2009.
Multifamily 60-day delinquency was up 1 basis points to 0.72 percent and was also worse than 0.66 percent in November 2009.