Loan modifications and refinancings by Fannie Mae and Freddie Mac were up in the second quarter as the volume of permanent modifications under the Home Affordable Modification Program (HAMP) increased 65%, while refinancings under the Home Affordable Refinance Program increased by 30%. The data were released in the Federal Housing Finance Agency's (FHFA) Foreclosure Prevention & Refinance Report for the second quarter.
Total loan modification volume increased 24% to nearly 171,200 during the quarter, with the majority of modifications completed through HAMP. More than half of completed loan modifications in the second quarter lowered borrowers' monthly payments by more than 30%, the FHFA says.
Loans modified in the last two quarters are performing substantially better than loans modified in earlier periods, Fannie and Freddie's regulator says. Less than 10% of loans modified in the last two quarters were 60+ days delinquent three months after modifications.
Short sales and deeds-in-lieu increased 27% during the quarter to nearly 30,900.
Foreclosure starts increased 12% to nearly 275,100, while completed foreclosure sales and third-party sales increased 15% to nearly 112,400 in the second quarter.
SOURCE: Federal Housing Finance Agency