Data released last evening showed that total delinquencies for loans in Fannie Mae pools were unchanged in February at 3.6% in February, the first month that the rate did not decline since the Covid-19 Pandemic struck last spring. Notably, the same rate for Freddie Mac pools declined by 0.2% to 2.9%, the low reached since April 2020. For seriously delinquent loans 90+ days delinquent, Fannie Mae experienced a 0.1% increase to 2.5%, while Freddie Mac experienced a 0.1% decrease to 2.1%. It is important to keep in mind that the share of loans that are seriously delinquent in agency pools can change due to buyouts as well as from changes in status. To see if buyouts are a significant factor below find a chart of 1-month constant default rates (CDRs) for the two enterprises: The CDR for loans in Freddie Mac pools continues to be at or below that for Fannie Mae, implying that buyouts are not a significant factor in the spread in loan performance between the two agencies.
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