| June Looks Better for Fannie
$77.5 billion business purchases July 21, 2004 By MortgageDaily.com staff |
| Fannie Mae reported slightly higher business purchases and a lower duration gap during June.
Business volume for the Washington D.C.-based company was $77.5 billion, according to June’s monthly summary released today, up from $74.6 billion during May. A year ago, business volume was reported at $142.4 billion. Portfolio purchases of $37.2 billion and MBS (mortgage-backed securities) acquired by others of $40.4 billion made up June’s purchases, according to the monthly business summary. Fannie reported a $2.3 trillion book of business which — comprised of $1.4 trillion in outstanding MBS and $0.9 trillion in gross mortgage portfolio. Residential delinquency, which the government sponsored housing enterprise reports on a one-month lag, was 0.57% in May, up from 0.56% in April. The multifamily rate was 0.14% — a decrease of two basis points. The effective duration gap was 2 months in June, Fannie reported, down from 3 months in May. Second quarter earnings for the secondary giant were $1.1 billion, according to a separate announcement. Fannie’s chairman and CEO Franklin D. Raines described the market as “challenging” during the second quarter, “characterized by significant volatility, continued strong investor competition for mortgages, and a marked shift among consumers to alternative mortgage products.” |
