Mortgage Daily

Published On: July 2, 2003
Freddie Reports Growth, Portfolio Totals Still May be Revised

$1.3 mortgage portfolio reported, $77.4 billion in new business purchases

July 2, 2003

By ANNE LINEBERRY

Secondary lending giant Freddie Mac has released its monthly production for May, reporting a growing portfolio.

The company reported a total mortgage portfolio of $1.3 trillion at the end of May. This total represents a net gain of almost $10 billion over April, but the total is still lower than 2002 year end’s total of 1.31 trillion, the statement said. Freddie reported $77.4 billion in new business purchases and $67.5 billion in liquidations for May. Currently, Freddie is reporting May 2002’s mortgage portfolio balance at $1.23 trillion, with a net gain for that month of $10.3 billion.

Freddie’s retained portfolio for the year-to-date was reported at $572 billion. According to the production statement, this number may be revised after the completion of earnings restatements which have yet to be issued for 20002001 and 2002. April’s totals reflected a net loss in the retained portfolio, with May’s production turning that around and showing an 8.1 percent annualized growth rate, the statement said. May’s end year-to-date $572 billion total retained portfolio is a new record for 2003, according to the statement, which posted a net addition of $3.8 billion for the month. Net additions have fluctuated between negative and positive totals throughout 2003, according to the report.

Freddie also reported $48.8 billion in net purchase commitments for the month, making the year-to-date total $123.8 billion. May’s net purchase commitments almost doubled those in April, which were reported at $25.2 billion. May’s net purchase commitments represent the largest monthly volume so far this year or in all of 2002, according to the statement.

As for participation certificates, the company is still reporting a net loss of $22 billion for the year, but for May, the issuances, reported at $66.2 billion, outweighed the liquidations, reported at $60.8 billion. Freddie said that as of the end of May, PCs totaled $1.06 trillion.

Freddie said its duration gap for May was zero, the same as the prior month.


Anne Lineberry is MortgageDaily.com‘s editor. She previously worked as an online editor/producer for DallasNews.com and on the Metropolitan desk for the print edition of The Dallas Morning News. Email Anne at [email protected]

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