Freddie Mac Mortgage Purchases Drop by Nearly Half in December

(February 5, 2013) Refinance-loan purchase and guarantee volume fell by nearly half from November to December according to Freddie Mac’s recently released Monthly Volume Summary report while the number of loan modifications dipped slightly from the previous month..

Freddie Mac completed a total of 6,288 loan modifications in December, a decline of 5.0 percent from the 6,622 loan modifications completed in November. For all of 2012, Freddie Mac completed a total of 69,581 loan modifications, an average of 5,798 per month compared to an average of 9,098 loan modifications per month in 2011.

The delinquency rate for single-family homes in Freddie Mac’s loan portfolio remained unchanged at 3.25 percent in December. Last year at this time, the delinquency rate for single-family homes was 3.59 percent and remains at its lowest level since September of 2009.

Delinquency rates for multi-family dwellings in December fell to 0.19 percent from 0.24 percent in November. The delinquency rate in December of last year was 0.21 percent.

Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on the unpaid principal balance of mortgages 60 days or more delinquent or in foreclosure as of period end.

Freddie Mac’s total mortgage portfolio decreased at an annualized rate of 12.9 percent from November to December as their total holdings fell from $1.978 trillion to $1.956 trillion.

Single-family refinance-loan purchase and guarantee volume was $22.5 billion in December, reflecting 67 percent of total mortgage purchases and issuances. That was down from $46.6 billion in November, a drop of 51.7 percent.

Total refinance-loan purchase and guarantee volume was $33.6 billion, down from $62.5 billion in November, a decline of 46.2 percent.

Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications

Source:
Freddie Mac

Reported by Jeff Alan