The GSEs (Fannie Mae and Freddie Mac) completed 22,411 foreclosure prevention actions in November, bringing the total to 4,013,134 since the start of the conservatorships in September 2008, according to the Foreclosure Prevention Report released by the Federal Housing Finance Agency (FHFA) on Thursday. Over half of these actions have been permanent loan modifications.
The report indicated that there were 11,264 permanent loan modifications in November compared with 11,010 in the prior month. The November loan modifications brought the collective loan modification total of the GSEs to 2,140,484 since the conservatorships began in September 2008. Forty-three percent of modifications in November were modifications with principal forbearance. Modifications with extend term only accounted for 41 percent of all loan modifications during the month.
When it came to Fannie and Freddie’s mortgage performance serious delinquency rates increased from 0.95 percent in October 2017 to 1.05 percent in November, which means that approximately 78 percent borrowers who received modification in November were three or more months delinquent.
Though third-party and foreclosure sales decreased slightly from 4,776 in October to 4,730 in November, foreclosure starts increased from 13,601 in October to 18,605 in November.
In terms of deeds-in-lieu of foreclosure finalized in November, that number decreased significantly compared with October: 1,147 in October vs. 930 in November, according to the report. The number of short sales also decreased slightly with 832 completed short sales recorded in November compared with 839 in the prior month. Together, deeds-in-lieu and short sales were down 19 percent, the report said.
Like the previous month, curtailment of income was the top reason for delinquency with 23 percent borrowers citing this as the reason for non-payment. This was followed by excessive obligations at 19 percent and unemployment at 7 percent.