Fannie Mae Delinquencies Keep Rising (FNM, FRE)

It seems that the end of the recession notices via positive GDP has not reached Main Street America, at least as far as paying for their single-family house.  Fannie Mae (NYSE: FNM) has just reported its October 2009 data and the figures are not getting better.  The serious delinquency rates are astronomical.  We would note that the internal data is for October, but the delinquency data is from September.  While the Freddie Mac (NYSE: FRE) data was not yet seen, most consider these step brother and step sister.

The total mortgage portfolio fell 2.7% in October down to $771.45 billion.  Unfortunately that is 28% annualized.  The total book of business fell by about $8.4 billion to $3.23, trillion, which is ‘only’ a 3.1% annualized decline.  Net commitments to purchase mortgages fell by more than 7% to $64.5 billion.

Serious delinquencies are 90-days past due…. That was 4.72% for single-family houses in September, up from 4.45% in August and up from 1.72% a year ago. The non-credit enhanced rate was 3%, but the credit enhanced rates are now over 12%.

Fannie Mae is down 1% after the close at $0.99 and Freddie Mac is unchanged at $1.13.

Jon C. Ogg
November 24, 2009