FHFA: GSEs See Foreclosure Starts Drop 11% In Q2

Foreclosures and delinquencies continued to drop at government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac during the second quarter.

Completed third-party sales and foreclosure sales fell 10%, while foreclosure starts dropped 11% during the quarter, according to the Federal Housing Finance Agency's (FHFA) Foreclosure Prevention Report.

What's more, real estate owned inventory continued to decline as property dispositions outpaced property acquisitions.

The number of delinquent loans handled by the GSEs dropped significantly in the second quarter. The number of loans that were 60-plus days delinquent declined 7% to reach the lowest level since the start of conservatorship in September 2008.

The number of seriously delinquent loans – those 90-plus days past-due – fell to 2.8% at the end of the quarter, compared with 7.6% for Federal Housing Administration (FHA) loans, 3.9% for Veterans Affairs (VA) loans and 5.9% for all loans (industry average).

During the first half of 2013, the GSEs completed more than 247,000 foreclosure-prevention actions – 117,000 of which came in the second quarter.

Since being placed into conservatorship in 2008, the two companies had, as of the end of the second quarter, completed more than 2.9 million foreclosure-prevention actions that helped approximately 2.4 million borrowers stay in their homes, including more than 1.4 million who received permanent loan modifications.

More than half of distressed homeowners who received permanent loan modifications in the second quarter had their monthly payments reduced by more than 30%.

In addition, about one-third of permanent loan modifications in the second quarter included principal forbearance.

Approximately 29,400 short sales and deeds-in-lieu were completed during the second quarter, bringing the total to more than 505,700 since the start of conservatorship.

To read the full report, which includes charts and graphs, as well as state-by-state data, click here.


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