Despite continued growth in their retained portfolios and surging new business volume, Fannie Mae and Freddie Mac have managed to pare their so-called non-mortgage liquidity portfolios during 2002. Fannie Mae’s “liquid investment portfolio” declined from $38.83 billion at the end of last year to $26.55 billion as of the mid-year mark, according to the company’s recently released investor/analyst report. The biggest chunk of that decline is in Eurodollar time deposits, which fell $3.2 billion