FHFA Updates GSEs’ Foreclosure Prevention Efforts

Fannie Mae and Freddie Mac initiated more than 485,000 mortgage loan modifications through December 2009, under the Obama administration's Home Affordable Modification Program (HAMP), according to the companies' conservator, the Federal Housing Finance Agency (FHFA).

Total refinance volume at the government-sponsored enterprises (GSEs) increased in December 2009 in response to a gradual June-to-November 2009 decline in rates, the FHFA adds. The number of refinances between Fannie and Freddie totaled 296,746 in December – up from 216,143 in November 2009.

The FHFA's latest foreclosure-prevention report summarizes foreclosure prevention data for Fannie Mae and Freddie Mac through October 2009, and includes HAMP modification data and refinance data through December 2009.

Of the some 485,000 HAMP modifications initiated by the GSEs, nearly 43,000 were permanent and about 442,500 were considered "active trials." Completed loan modifications declined to approximately 7,000 in October 2009, from 12,500 in September 2009.

Other completed home-retention actions, such as repayment plans and forbearance plans, increased in October 2009. Repayment plans increased 12%, while forbearance plans increased 38% in October 2009.

Loan performance is a mixed bag at the GSEs: loans that are only one month delinquent decreased by 29,000 loans, or nearly 4%, in October 2009 to 705,000. Loans 60+ days delinquent, however, increased by 66,000 loans, or more than 4%, in October 2009 to 1.7 million.

Foreclosure starts in October 2009 increased 5% compared with September to nearly 77,900. Completed foreclosure and third-party sales increased 20% to 29,200 in October 2009, from 24,200 in September 2009.

SOURCE: Federal Housing Finance Agency


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