FHFA: Foreclosure Prevention Actions Top 3.5 Million Through Second Quarter

The Federal Housing Finance Agency said Fannie Mae and Freddie Mac completed 63,593 foreclosure prevention actions in the second quarter, bringing the total number of foreclosure prevention actions to more than 3.5 million since the start of the conservatorships in September 2008.  

FHFA said the government-sponsored enterprises helped more than 2.9 million borrowers stay in their homes, including more than 1.8 million who received permanent loan modifications.    

The agency’s Foreclosure Prevention Report (http://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FPR_2Q2015FINAL.pdf) also reported:  

–The REO inventory of Fannie Mae and Freddie Mac declined by 14 percent during the second quarter to 86,515, marking the first time REO inventory has been below 100,000 since 2009.

–The number of 60+ day delinquent loans declined by another 6 percent during the quarter.

–Nearly 31 percent of all permanent loan modifications in the second quarter helped to reduce homeowners’ monthly payments by more than 30 percent.

–The serious delinquency rate of Fannie Mae and Freddie Mac loans fell to 1.6 percent at the end of the second quarter.

–The 63,593 foreclosure prevention actions in the second quarter brought the total to 3.54 million since the start of conservatorships in September 2008. Of these actions, 2.92 million helped troubled homeowners stay in their homes, including 1.83 million permanent loan modifications.

–The share of modifications with principal forbearance remained at 19 percent. Modifications with extend-term only accounted for 47 percent of modifications in the second quarter due to improved house prices and a declining Home Affordable Mortgage Program-eligible population.

–18 percent of loans modified in second quarter 2014 had missed two or more payments, one year after modification.

–The GSEs completed 9,423 completed short sales and deeds-in-lieu during the quarter, bringing the total to 623,963 since the start of conservatorships.

–The number of 60+ days delinquent loans declined by 6 percent during the second quarter as the economy improved and house prices continued to increase.

–The serious delinquency rate fell to 1.6 percent at the end of the quarter compared to 5.5 percent for FHA loans, 2.9 percent for VA loans and 4.0 percent for all loans (Industry average).

–Third-party sales and foreclosure sales declined 14 percent to 29,945 while foreclosure starts decreased 11 percent to 62,364 in the second quarter.

–REO inventory declined 14 percent during the quarter to 86,515, as property dispositions continued to outpace property acquisitions.  

In September, Fannie Mae and Freddie Mac announced revisions to their loan modification eligibility requirements to enable more borrowers to qualify for the Standard and Streamlined Modifications as well as provide more affordable modified payments. In May, FHFA announced that it would extend Fannie Mae’s and Freddie Mac’s participation in HAMP through the end of 2016. FHFA reported 1.802 million troubled homeowners have been offered a HAMP trial modification since the program started in April 2009. 646,122 of these homeowners have been granted permanent modifications through HAMP.