FHFA: GSEs Ramping Up Loss Mit Efforts

James B. Lockhart, director of the Federal Housing Finance Agency (FHFA), has issued the September monthly Foreclosure Prevention Report, which provides comprehensive monthly data on the loss mitigation efforts of Fannie Mae and Freddie Mac, as well as information on delinquencies, foreclosures initiated and foreclosures completed.

Since year-end 2007, while loans 60-plus days delinquent have increased, loans for which foreclosure was started actually decreased, the report says, and loss mitigation actions have increased for all workout types. Short sale and deed-in-lieu volumes, on the other hand, increased significantly.

In comparison to 2007, the government-sponsored enterprises' (GSEs) loss mitigation performance ratio for 2008 shows considerable sustained improvement – 54.6% in 2008 versus 43.5% for 2007, the FHFA adds. The loss mitigation ratio is calculated at the total mitigation activities (payment plans, HomeSaver Advances, loan modifications, short sales, deeds in lieu, assumptions and chargeoffs) divided by the total of loss mitigation activities plus foreclosures completed and third-party sales.

The complete report is available at www.fhfa.gov.

Source: Federal Housing Finance Agency


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