RISMEDIA, January 12, 2010—The Federal Housing Finance Agency recently released its third quarter Foreclosure Prevention & Refinance Report, which shows that as of November 2009, Fannie Mae and Freddie Mac (the Enterprises), implemented more than 405,000 trial and permanent loan modifications under the Administration’s Home Affordable Modification Program
(HAMP) and refinanced 4 million loans. The report, which now includes data on delinquencies, loan modifications and refinance activity for each Enterprise, details the actions Fannie Mae and Freddie Mac have taken to prevent foreclosures and keep people in their homes.
Highlights of the report include:
-As of Nov. 30, 2009, the Enterprises had implemented 405,700 HAMP active trial and permanent loan modifications.
-Foreclosure starts on Enterprise loans declined in the third quarter by 15%.
-Loan modifications entered into on Enterprise loans, excluding HAMP trial loan modifications, increased 14% from the second quarter, from 32,300 to 36,700.
-Nearly half of loan modifications completed in the third quarter, excluding HAMP trial modifications, resulted in borrowers’ payments decreasing by over 20%.
-Loans modified in recent quarters performed slightly better six months after modification than did earlier modifications.
-Short sales and deeds in lieu increased by 39% during the third quarter from 12,300 to 17,400.
-Loans 60-plus-days delinquent increased by 260,300 loans or nearly 20% during the third quarter to 1.6 million.