FHFA: GSE Foreclosure Prevention Actions Near 3.6 Million

The Federal Housing Finance Agency reported Fannie Mae and Freddie Mac completed 54,744 foreclosure prevention actions in the third quarter, bringing total foreclosure prevention actions to just under 3.6 million since the start of the conservatorships in September 2008.   

FHFA said these actions have helped more than 2.9 million borrowers stay in their homes, including more than 1.8 million who received permanent loan modifications.    

Other report highlights:  

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

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

–As of September 30, 19 percent of loans modified in third quarter 2014 had missed two or more payments, one year after modification.

–8,721 completed short sales and deeds-in-lieu took place during the quarter, bringing the total to 632,684 since start of conservatorship.

–60+ days delinquent loans declined 3 percent during the third quarter as the economy improved and house prices continued to increase.

–The GSEs’ serious delinquency rate fell to 1.5 percent at the end of the third quarter compared to 5.4 percent for FHA loans, 2.9 percent for VA loans and 3.6 percent for all loans.

–Third-party sales and foreclosure sales decreased 10 percent to 26,989 while foreclosure starts increased 6 percent to 66,192 in the third quarter.

–REO inventory declined 11 percent during the quarter to 77,204, as property dispositions continued to outpace property acquisitions.  

The report can be accessed at http://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FPR_3Q2015FINAL.pdf.