Federal Home Loan Mortgage Corp (OTCBB:FMCC) released monthly volume numbers for April 2015. It stated that the total mortgage portfolio grew at an annualized pace of 0.8% in April. The single-family refinance-loan ‘purchase and guarantee’ volume came at $21.3 billion accounting 66% of aggregate single-family mortgage issuances of purchases. Relief refinance mortgages contributed almost 10% of total single-family refinance amount in April.
The highlights
Federal Home stated that total number of loan modifications came at 5,306 in April while the number stood at 19,927 for the four months concluded April 30, 2015. The total unpaid principal balance of mortgage-related investments declined almost $6.2 billion in April. The mortgage-related securities as well as other guarantee commitments grew at an annualized pace of 4.2% in April.
The single-family serious delinquency percentage declined to 1.66% in April from 1.73% in March. The multifamily delinquency percentage came flat at 0.03% in April. The gauge of exposure to variations in portfolio market value averaged $90 million in April with duration gap averaged zero months. Back in 2008, the Director of the FHFA fixed FHFA as Conservator of Federal Home.
The buzz
Apart from the monthly volume numbers, Federal Home Loan Mortgage Corp (OTCBB:FMCC) is in news due to the Shelby Bill fight. Richard X. Bove, the VP Equity Research at Rafferty Capital Markets, stated he is of view that the majority of Shelby’s bill will transform into law and the biggest part will be focused on Federal Home and peer firm Fannie Mae.
The Senate Banking Committee voted to pass Sen. Richard Shelby’s banking Bill to the full Senate for consideration. The vote was approved purely on partisan support as no democrat voted for it. However, the expert believes that most of the proposed bill is set to become law. It is because the bill has been designed in a manner to get the majority support possible from the insurance, banking and mortgage industries.
