Delinquencies Rise Further In Freddie's Shrinking Portfolio

   DOW JONES NEWSWIRES 
 

Fannie Mae (FNM) said Tuesday that delinquencies in its mortgage portfolio continued to rise, putting further pressure on the mortgage financier.

It and smaller sibling Freddie Mac (FRE) were put into conservatorship a year ago by the federal government amid fears of mounting losses.

Fannie said July serious delinquencies, or those at least 90 days behind, rose to 4.17% from 3.94% in June and 1.45% a year earlier. Fannie's delinquencies have been worse than Freddie's.

The report also showed that Fannie's mortgage portfolio was flat in August at $779.42 billion, just $10 million above Freddie's. Fannie's book of business, which includes mortgage-backed securities and other guarantees, rose $10 billion to $3.23 trillion. Its annualized growth rate was 3.7% for August.

In addition, Fannie's net commitments to purchase mortgages tumbled 69% from July to $31.76 billion, the lowest figure since January.

Freddie shares, which have been active and volatile the past several months, were flat premarket at $1.60.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; [e-mail]