Agencies: Fannie Mae's Purchases Reflect Uptick in Originations

WASHINGTON - The recent increase in market share for mortgage bankers is seeping down to the secondary market agencies.

According to data released last week, Fannie Mae's mortgage purchases jumped by about $1 billion in May, compared with April, to $7.2 billion.

Excluding a whopping $6.4 billion securitization deal with Home Savings of America, purchases at Freddie Mac were about the same as April's $4.4 billion.

John Britti, vice president of pricing, said Freddie Mac, formally the Federal Home Loan Mortgage Corp., expects it will take 60 to 90 days before the uptick in applications at mortgage banks translates into significantly greater business at the agency.

Mr. Britti conceded that Fannie Mae had captured a larger share of the originations market recently. But he said Freddie Mac did not view monthly variations in market share as significant.

Overall, Fannie Mae, formally the Federal National Mortgage Association, captured 54.3% of the agency market in the first quarter. Freddie Mac's share was 45.7%.

So far in the second quarter, Freddie Mac leads with 53.5% of the agency market. Fannie Mae garnered 46.5% in April and May.

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Freddie Mac is trying to help lenders identify good homeownership counseling programs.

Last week, the agency published a guide that specifies best practices in the counseling industry.

Freddie Mac said a good program should allow participants to:

*View homeownership as a viable housing option, if not immediately, then in the future.

*Understand the importance of establishing good credit.

*Take care of any inaccuracies or deficiencies in their credit reports.

*Buy an affordable home through wise comparison shopping.

*Learn how to avoid delinquencies, defaults, and foreclosures.

Freddie Mac also has published a consumer home inspection kit to help consumers choose a home they can afford to maintain.

Helen Dalton, director of outreach and communications, said Freddie Mac, which requires home counseling for its affordable-housing loans, believes good counseling can help borrowers stay in homes.