Borrowers’ Income Losses Push GSE Delinquencies Upward

l Housing Finance Agency (FHFA) Director James B. Lockhart has [link=http://www.fhfa.gov/webfiles/14723/MayForeclosure_Prevention8309.pdf]released[/link] the FHFA's latest Foreclosure Prevention Report, which includes loan modification data for Fannie Mae and Freddie Mac through May 31. According to the report, delinquencies continued to increase, as approximately 80,100 more loans became 60 days or more delinquent in May. Loans 60+ days delinquent increased approximately 7% in May, to 1.3 million. Curtailment of income continues to be the largest reason for delinquency, growing from 34% in January to 40% in May. The report also shows that completed loan modifications fell for second consecutive month in May, to approximately 10,400, as the government-sponsored enterprises (GSEs) continue their focus on implementing the Home Affordable Modification Program (HAMP). Modifications under HAMP are counted as completed after borrowers have completed the program's three-month trial period. Foreclosure starts in May increased 5% from April to nearly 90,600, while foreclosure and third-party sales increased to 19,300, up from 14,200 in April. SOURCE: [link=http://www.fhfa.gov]FHFA

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