December Volume Down at Fannie

January 22, 2004

$73.4 billion business volume caps off record year

By staff

Fannie Mae's December business volume resulted in the lowest monthly total of 2003, but yearly results shone bright.

According to Fannie's latest monthly summary, business volume totaled $73.4 billion in December, decreasing from the previous month's $75.2 billion. In December of 2002, the total was $113.8 billion.

The total business volume was derived from $59.6 billion in mortgage backed securities (MBS) acquired by others and $13.8 billion in portfolio purchases, said the government sponsored enterprise.

The mortgage giant reported that business volume for the full year 2003 amounted to a record-breaking $1.4 trillion, soaring 68% above the level in 2002.

With $1.3 trillion in outstanding MBS and nearly $0.9 trillion in the gross mortgage portfolio at the year's end, the book of business balanced out to $2.2 trillion. At the end of 2002, the book of business stood at $1.8 trillion, according to the report.

Fannie said the duration gap on its mortgage portfolio averaged a negative one month, unchanged from November.

November's conventional single-family delinquency rate -- which is reported on a one month lag -- increased two basis points from the prior month to 0.59%, while the multifamily delinquency rate of 0.13% rose one basis point, said the company.

Fannie announced today that its net income for 2003 grew 71% from the previous year to $7.9 billion. .

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