FANNIE MAE PAST DUE MORTGAGES HIT THREE YEAR LOW

“Fannie Mae Past Due Mortgages Hit Three Year Low”

I know the article below, primarily speaks about the increase volume that Fannie Mae is doing, but with rates where they are, that's not news. The item in the article that we should all applaud is that past due loans hit a three year low. That is very exciting news.

Fannie MBS Issuance Surges, Past Dues Hit Three-Year Low

By Brian Collins

Fannie Mae's issuance of mortgage-backed securities jumped 20% in December after a similar increase in November, according to new figures released by the mortgage giant.

Fueled by refinancings, MBS issuance hit $76.3 billion in December, up from $63.7 billion in the prior month.

But Fannie also reported that commitments to purchase mortgages from its seller/servicers fell 16% from November to $51.4 billion -- which could signal the refi boom may be slowing somewhat. (Then again, the yield on the benchmark 10-year Treasury this week was within 9 basis points of matching its all-time low.)

Meanwhile, Fannie's single-family delinquency rate dropped below 4% for the first time since June 2009. The percentage of guaranteed loans 90 days or more past due fell 9 basis points from November to 3.91% in December.

The GSE's serious delinquency rate was stuck at 4% for the three preceding months.

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