Mortgage Daily

Published On: August 27, 2003
Freddie’s July Busy, Liquidations OutPace Purchases

Company still in line to restate years of earnings

August 27, 2003


Secondary lender Freddie Mac showed a net loss of $15.8 billion in its total mortgage portfolio for July.

In its monthly production summary, the company reported $80 billion in new business purchases and $95.9 billion in liquidations for the month. So far this year, Freddie has posted a net portfolio loss of $20.3 billion.

Annualized growth rate so far this year for Freddie is negative 2.7 percent, it said. Still, the total mortgage portfolio topped $1.29 trillion at the end of July, according to company statistics.

The retained portfolio increased for the month at an annualized rate of 18.1 percent, Freddie said. Retained purchases were reportedly $44.3 billion for the month, with an ending balance of $595.2 billion, Freddie said.

Retained commitments totaled $44.0 billion, Freddie said, down significantly from the $63.5 billion reported for June.

Freddie’s mortgage participation certificates (PC) totaled $695.5 billion at the end of July, marking an annualized shrinking rate of 41.1 percent for the month, it said.

PC issuances totaled $70.3 billion for the month, according to Freddie, with liquidations totaling $87.4 billion.

The government-sponsored enterprise reported a duration gap of one for July, up from zero in the prior three months.

Freddie announced Friday that it is seeking to replace newly appointed chief executive officer and president Greg Parseghian, at the direction of its oversight agency, the Office of Federal Housing Enterprise Oversight.

Fitch Ratings noted the announcement by downgrading Freddie’s subordinated debt and preferred stock to AA- from AA. Other portions of Freddie’s finances held their current ratings by the company.

Sister GSE Fannie Mae reported $144.1 billion in business volume for July, its highest reported monthly volume ever.

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

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