Fannie Mae Book Of Business Shows Slower Growth

Fannie Mae announced its Guaranty Book of Business grew at a compound annualized rate of 3% in April. That’s a significant drop from March when its book increased by 9.7%: the largest jump since August 2021.

The 3% jump was the smallest increase since July 2021, when the book of business rose by .4%. The slower pace helped reduce the year-to-date growth numbers to 6.5%. In March, the Fannie Mae book of business had year-to-date growth of 7.7%.

The Fannie Mae Guaranty Book of Business consists of Fannie Mae mortgage backed securities (MBS) outstanding (excluding the portions of any structured securities Fannie Mae issues that are backed by Freddie Mac securities), other credit enhancements that Fannie Mae provides on mortgage assets, and mortgage loans of Fannie Mae held in its retained mortgage portfolio.

Overall, Fannie Mae saw its retained mortgage portfolio activity decrease 7.6%. The drop was driven by declines in purchases, sales, and liquidations.

Delinquencies continue their decline. According to the Fannie Mae report, the Conventional Single-Family Serious Delinquency Rate decreased 7 basis points to 0.94% in April. The Multifamily Serious Delinquency Rate decreased 3 basis points to 0.35% in April.