Freddie Mac Loan Delinquencies Rise

The number of serious delinquencies on Freddie Mac guaranteed

single-family loans hit 3% in August – the highest number ever reached by the company.

3.13% of Freddie Mac loans were 90 days or more past due, up 18 basis points from July. In August 2008 their delinquency rate was only 1.11%.

The jump in defaults was mostly due to Freddie’s $172 billion portfolio of guaranteed alt-A loans, which had a 9.44% serious delinquency rate as of June 30. The good news is that in August Freddie issued $47.5 billion of MBS, compared to $356.8 billion during the same period last year. Freddie reported that its purchases of refinanced loans in August totaled $35.6 billion, an increase of 4.3% from July.