DOW JONES NEWSWIRES
Freddie Mac (FRE) said Friday that delinquencies in its mortgage
portfolio continued to rise last month, putting further pressure on
the mortgage financier.
It and larger sibling Fannie Mae (FNM) were put into
conservatorship a year ago by the federal government amid fears of
mounting losses at the companies.
Freddie said August delinquencies rose to 3.13% from 2.95% in
July and 1.11% a year earlier.
The report also showed that Freddie is continuing to unwind its
portfolio, falling another $20 billion during the month to $779.41
billion. As in July, the drop was driven by a decrease in Freddie
mortgage-backed securities held by the company. Still, the
portfolio rose at a 3.7% annualized rate in August.
Freddie shares, which have been active and volatile the past
several months, were recently down 2.07% to $1.89.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com