GSE Delinquency Rate Less Than Half of Industry Average

Freddie Mac and Fannie Mae have together completed nearlyrn3 million foreclosure prevention actions since being placed in conservatorshiprnin 2008 their conservator, the Federal Housing Finance Agency (FHFA) saidrntoday.  In its Foreclosure Preventionrnreport for the 2^nd quarter of 2013 FHFA said that during the quarterrnthe two government sponsored enterprises (GSEs) had completed more than 117,000rnactions to bring the total year-to-date to 247,000.  </p

The majority of the actions were those that allowed homeownersrnto stay in their homes.  Home retentionrnactions in the first half of the year totaled 187,477 with 123,401 of those beingrnloan modifications.  There were 55,730rnrepayment plans, and 8,029 forbearance plans. rnIn addition the GSE’s have assisted 59,671 homeowners to exit homernownership without a foreclosure.  Overrn50,000 of the year-to-date home forfeiture actions have been short sales withrnthe remainder deeds-in-lieu of foreclosure.</p

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The Home Affordable Modification Program (HAMP) continuesrnto be an active foreclosure prevention program with 19,247 homeowners in activernHAMP modification trials at the end of the quarter. Since the beginning of thernHAMP program there have been 1.04 million trial modifications started, 592,067rnof which became permanent modifications. rnOf those 147,020 defaulted and 12,819 paid off leaving 432,228 permanentrnmodifications still in active status.  </p

The performance of modified loans remains strong.  FHFA said that as of June 30, about 11rnpercent of loans modified in the third quarter of 2012 had missed two or morernpayments. </p

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The number of 60 day and over delinquent loans held byrnthe GSE’s declined 7 percent during the quarter to the lowest level since thernstart of the conservatorship in 2008. rnThe serious delinquency rate (90 days or more) fell to 2.8 percent atrnthe end of the quarter compared to a 5.9 percent industry average delinquency.  The rate was also substantially below that ofrnFHA at 7.6 percent during the quarter and the VA which had a 3.9 percentrnserious delinquency rate.</p

The Enterprises’ REO inventoryrncontinued to decline during the quarter as property dispositions outpaced acquisitions.rnProperty acquisitions dropped 7 percent while dispositions decreased 2 percentrnin the second quarter.</p

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