The Federal Housing Finance Agency
(FHFA) is celebrating the completion of more than 3 million foreclosure
prevention actions by Freddie Mac and Fannie Mae since the two government
sponsored enterprises (GSEs) were placed in conservatorship. Helping
families avoid foreclosure through
loan modification and
other programs has been a priority of the agency and is one of the key
goals of FHFA’s
for the two companies.
prevention is generally categorized as either home retention actions which
include loan modifications, forbearance plans and repayment plans and or as foreclosure
alternatives where homeowners are assisted to exit homeownership without
foreclosure, usually through a short sale or a deed in lieu.
“Three million completed foreclosure prevention actions is a significant achievement,” said FHFA Acting Director
Edward J. DeMarco. “It
represents real assistance to homeowners, improved
stability for their communities,
and has produced meaningful savings for taxpayers. I am
grateful for the persistent
effort of everyone at
FHFA, Fannie Mae, and
Freddie Mac, who have contributed to reaching this milestone.”
million foreclosure prevention actions since September 2008 included 1.024
million trial modifications started through the Home Affordable Modification
Program (HAMP) which resulted in 601,542 permanent modifications of which
431,852 are still active. Permanent
modifications that were done outside of HAMP total 748,542. In addition the GSEs have put into place
736,033 repayment plans, 157,961 forbearance plans, and 9,717 charge-offs in
lieu. Home forfeiture actions have
resulted in 482,363 short sales and 49,383 deeds-in-lieu.
though the housing crisis appears to be winding down, the two GSEs completed
74,879 home retention actions in the third quarter of 2013, 57,878 of which
were loan modifications. This is down
from the 87,675 home retention actions and 59,635 modifications in the second
quarter. The companies completed 21,803
short sales (compared to 24,656 in the previous quarter) and 4,194 deeds in
lieu (down from 4,757).
in the GSE portfolios continue to drop, with loans 30 to 59 days past due
falling from 513,000 in the second quarter to 460,000 in the third. 60 day plus loans fell from 915,000 to
852,000 and seriously delinquent loans from 783,000 to 724,000. The thirty-day delinquency rate was down from
1.83 percent to 1.64 percent and the serious delinquency rate from 2.78 percent
to 2.56 percent.
were 117,000 foreclosure starts in the third quarter compared to 125,000 in the
second and the number of housing units in the REO inventory increased slightly
to 148,000 from 142,000. The number of
third party and foreclosure sales increased by 1,000 to 56,000.
The more than 3
million foreclosure prevention actions completed since the start
of the conservatorships have helped roughly
2.5 million borrowers
stay in their homes through
loan modifications and other actions.
over 500,000 borrowers
avoided foreclosure through
short sales or deeds-in-lieu.
In addition to the foreclosure prevention actions, Fannie Mae and
Freddie Mac have completed more than 18
million refinances since April 2009 including more than 2.9 million through the Home Affordable Refinance Program.