The GSEs’ distressed mortgage volume remains high in five states

Mortgage

Although the performance of the government-sponsored enterprises’ single-family loans continues to improve, the deeply delinquent totals remain significant in states with court-processed foreclosures.

“Deeply delinquent loans (365+ days) are highly concentrated in states that require a judicial review of foreclosure activity that results in longer foreclosure timelines,” the Federal Housing Financial Agency said in its latest foreclosure prevention report. “As of March 31, 2019, approximately 45% of the enterprises’ deeply delinquent loans were in five judicial states: New York, Florida, New Jersey, Illinois and Pennsylvania.”

Loans delinquent

New York had 8,588 deeply delinquent loans at that time and Florida 7,637. New Jersey had 3,959 deeply delinquent loans, Illinois 3,515 and Pennsylvania 3,193.

Most of these states made some real progress in reducing the volume of deeply distressed loans in the past year, but little or none compared the fourth quarter of last year.

New York’s deeply delinquent loans dropped by more than 33% from a year ago, but unchanged from the previous quarter. Florida’s fell more than 30% year-over-year, but decreased by less than 9% on a consecutive-quarter basis. New Jersey’s deeply delinquent loans are down more than 45% year-over-year, and dipped by more than 7% from the previous quarter.

In Illinois they are down by more than 31% from a year ago and less than 1% from the fourth quarter of last year. Pennsylvania’s deeply delinquent loans are down almost 27% year-over-year, and less than 1% on a consecutive-quarter basis.

Fannie Mae and Freddie Mac completed 38,968 foreclosure prevention actions during the quarter. Almost 85% of the foreclosure prevention actions the GSEs have taken since they went into conservatorship have helped troubled homeowners stay in their homes.

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