Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) reported that in January 2017, the total mortgage portfolio grew at an annualized pace of 3.7%. Single-family refinance-loan purchases and guarantee volume came at $20.9 billion, showing 59% of overall single-family mortgage portfolio purchase and issuances.

The update

Relief refinance mortgages included almost 5% of single-family refinance volume in January. Total count of single-family loan changes came at 3,105. The aggregate UPB of mortgage-related investments portfolio surged by almost $0.5 billion.

Federal Home mortgage-linked securities and other mortgage-linked guarantees surged at a yearly rate of 7.4% for the reported month. The single-family SDR dropped to 0.99% in January from 1% in December. Also, multifamily delinquency rate continued to be flat at 0.03%.

The measure of exposure to changes in PMVS-L averaged $14 million. Duration gap came at 0 months. Since September 2008, the company has been working under conservatorship of the Federal Housing Finance Agency.

Federal National and Federal Home Loan investors have been on a roller-coaster ride in last couple of weeks. Both the firms have been in limbo for years as the government and the courts decide their fate. While both shares got a large boost after the election, short sellers have recorded the most gains in the past few weeks. When an appeals law made a shareholder claim challenging the legality of Freddie and Fannie ’s net-worth sweep in this month, the shares price of both firms declined more than 30%.

According to S3 Blacklight, short sellers may have booked profit of over $100 million of the news. The short Interest pointer indicates there was $205.1 million short interest in in Fannie Mae and $104.2 million short position in Freddie Mac as of last month. Annualized borrowing fees have remained between 1.5% and 2% percent so far in this year. Short sellers jumped to initiate trade into both stocks after the post-election surge.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.