Posturing for Progress

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the latest SECONDARY MARKET Or ig i nat ion Business Grows at Fannie Mae Despite a decline in its mortgage portfolio, Fannie's book of business saw an uptick in April. of 18 percent. Year-to-date, the portfolio has an average contraction rate of 19.9 percent. As of the end of April, the portfolio's balance was approximately $588 billion, down nearly $10 billion from the end of March. The conventional single-family serious delinquency rate in the GSE's portfolio fell 9 basis points to 2.93 percent in March, while the multifamily serious delinquency rate fell 3 basis points to 0.36 percent, according to the summary. Fannie also recorded 13,741 loan modifications in April, bringing the year's total to 56,894. F reddie Mac announced that Richard C. Hartnack, formerly vice chairman and head of consumer and small business banking at U.S. Bancorp, has been elected as a director on the company's board. "Rick Hartnack is an outstanding addition to the Freddie Mac board of directors," said Christopher S. Lynch, non-executive chairman. "He is a seasoned industry executive with proven leadership experience and a deep understanding of our industry. Freddie Mac will benefit from Rick's detailed knowledge of underwriting, servicing, technology, and his dedication to operational excellence as our company builds a stronger, more efficient mortgage market for the future." Prior to joining U.S. Bancorp in 2005, Hartnack served as vice chairman, director, and head of the community banking group at Union of California. Before that, he was EVP at First Chicago Corporation, where he was responsible for community banking. He is also a past director of the Federal Reserve Bank of San Francisco, MasterCard International, Union BanCal Corporation, and U.S. Bank (a U.S. Bancorp subsidiary). He previously served as chairman of the California Bankers Association, Bank Administration Institute, and the Los Angeles Urban League. Mortgage Rates Stable Through April FHFA records a small increase in rates amid lukewarm market reports. T he Federal Housing Finance Agency (FHFA) reported a slight bump in contract mortgage interest rates throughout April. FHFA's interest rate survey shows the average interest rate on a 30-year fixed-rate mortgage was 3.77 percent in April, an increase of 3 basis points month-over-month. The average loan amount was $266,500, up $3,100 from March. The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.56 percent for loans closed in late April, up 0.02 percent from March, according to an index of new mortgage contracts. The effective interest rate—which accounts for the addition of initial fees and charges over the life of the mortgage—was 3.69 percent, up 4 basis points. Interest rates are typically locked in 30–45 days before a loan closes, so the late April data reflects market rates from midto-late March. Data for April was based on 6,447 reported loans from 30 lenders and does not include refinances, balloon loans, or federally insured mortgages. While rates didn't move much in April, May's report (which hadn't been released at the time of this writing) should show more movement; Freddie Mac reported an increase of nearly half a percentage point for the 30-year fixed average throughout the month. The M Report | 59 se c on da r y m a r k e t Former U.S. Bancorp exec joins the GSE's board of directors. A na ly t ic s Freddie Mac Board Gains New Director s e r v ic i ng F annie Mae's total book of business grew slightly in April, though its mortgage portfolio saw another sizable dip. According to the GSE's monthly volume summary, its book grew at a compound rate of 0.2 percent in April, its first month of growth this year. Fannie's book totaled approximately $3.178 trillion as of April 30. New business acquisitions totaled $77.3 billion, up from $71.4 billion in March and $53.5 billion in April 2012. Fannie's gross mortgage portfolio shrank at a compound rate

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