$165.2 billion 4th quarter business purchases
By MortgageDaily.com staff
2/23/2005

The nation's largest secondary lender saw its volume drop every month in the fourth quarter and chopped in half for the year.

Fannie Mae's business volume of $48.1 billion in January was off $2.6 billion from the previous month, according to its latest monthly summary report.

Descending activity reported during the fourth quarter amounted to $165.2 billion, a downturn from the previous quarter's $171.1 billion.

For all of 2004, the Washington, D.C.-based company reported volume of $725.2 billion -- way below the record $1.4 trillion in 2003.

January's volume consisted of $37.0 billion in mortgage-backed securities acquired by others and $11.1 billion in portfolio purchases, the government-sponsored enterprise said.

The book of business balance of $2.3 trillion, which grew at annualized rate of 5% during 2004, was composed of a $0.9 trillion gross mortgage portfolio and $1.4 trillion outstanding MBS.

Single-family delinquency slipped one basis point from November to 0.63%. Fannie reports delinquency on a one-month lag.

Unchanged for the third consecutive month, the duration gap, which is the measure of the exposure to interest rate risk, was at a -1 month in January.

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