Freddie Purchases Sink

$77.5 billion new business
By MortgageDaily.com staff
11/26/2003

Freddie Mac reported a significant decrease in October new business purchases.

In its monthly summary of business activity, the government-sponsored enterprise said that October new business purchases totaled $77.5 billion, sinking from $90.9 billion the previous month. The total is closer to October last year's reported total of $73.6 billion.

Freddie said its total mortgage portfolio had an ending balance of $1.4 trillion, up $38 billion from September. The total is constructed by a retained portfolio of $655 billion and net mortgage participation certificates of $731 billion.

The September delinquency rate for single-family loans improved slightly by one basis point to 0.75%, said the mortgage giant. The figure is announced on a one-month lag.

The average duration gap was reported at 0, compared to +1 the previous month.

Freddie's credibility has been seriously impaired by $5 billion accounting scandal, resulting in numerous shareholder class action filings, a number of executive firings, and the recent demotion of the chief executive named in the wake of the disclosures.

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