Fannie, Freddie Completed 448,000 Foreclosure Prevention Actions In 2013

Fannie Mae and Freddie Mac report that they completed about 99,700 foreclosure prevention actions during the fourth quarter of 2013, bringing the total to more than 3.1 million since the start of conservatorship in September 2008.

About 2.6 million of these actions have helped troubled homeowners stay in their homes, including nearly 1.6 million permanent loan modifications, according to the Federal Housing Finance Agency's (FHFA) fourth quarter 2013 Foreclosure Prevention Report, also known as the Federal Property Manager's Report.

During 2013, servicers working on Fannie- and Freddie-backed loans completed nearly 448,000 foreclosure prevention actions – down from about 541,000 in 2012.

The report finds that serious delinquencies dropped 7% during the fourth quarter, compared to the third quarter, to reach 2.4% of all home loans – the lowest level since the first quarter of 2009.

In addition, completed third-party sales and foreclosure sales dropped 15% in the fourth quarter, compared to the third quarter, and foreclosure starts were down 3%.

Approximately 31% of borrowers who received permanent loan modifications in the fourth quarter had portions of their mortgage balance forborne.

As of December 31, 2013, about 13% of loans modified in the fourth quarter of 2012 had missed two or more payments, one year after modification.

Despite this, Fannie and Freddie's real estate owned (REO) inventory actually increased slightly in the fourth quarter, as property acquisitions outpaced dispositions for the second consecutive quarter.

To help liquidate its REO, Fannie Mae recently announced that it had extended its 3.5% closing-cost assistance incentive for HomePath properties purchased during the FirstLook period in 27 eligible states.

During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase a home without competition from investors. The FirstLook period is in effect for the first 20 days a property is on the market.

To view the full foreclosure prevention report, click here.


Please enter your comment!
Please enter your name here