GSEs Have Prevented Nearly 3.2 Million Foreclosures

Fannie Mae and Freddie Mac have completed nearly 3.2 million foreclosure prevention actions since the start of the conservatorships in 2008, with approximately 88,800 actions occurring in the first quarter, the companies reported in June. These measures have helped more than 2.6 million borrowers stay in their homes, including 1.6 million who received permanent loan modifications.

These actions are detailed in the Federal Housing Finance Agency's quarterly Foreclosure Prevention Report, which includes an online, interactive borrower assistance map for Fannie Mae and Freddie Mac mortgages.

Highlights from the report include the following:

  • About 42% of all permanent loan modifications helped to reduce homeowners' monthly payments by more than 30% in the first quarter;
  • About 27% of borrowers who received permanent loan modifications in the first quarter had portions of their mortgage balance forborne;
  • About 14,900 short sales and deeds-in-lieu were completed in the first quarter, bringing the total to more than 566,800 since the start of the conservatorships; and
  • Third-party sales and foreclosure sales fell slightly to 47,300 while foreclosure starts decreased 25 percent in the first quarter.

While the total number of troubled borrowers continued to decline, 31% of these borrowers remained deeply delinquent at the end of the first quarter. Florida, New York and New Jersey had the highest number of deeply delinquent loans (365+ days).

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