Google+
  • Ocwen23.53+0.10 +0.43%
  • Zillow115.02-1.34 -1.15%
  • Trulia49.24-0.72 -1.44%
  • NationStar29.90+0.52 +1.77%
  • CoreLogic33.26+0.59 +1.81%
  • RE/MAX32.31+0.88 +2.80%
  • Fannie Mae2.49+0.03 +1.22%
  • Freddie Mac2.41+0.01 +0.42%
  • Wells Fargo53.81+0.33 +0.62%
  • CitiMortgage53.66+0.14 +0.26%
  • Bank of America17.12+0.12 +0.71%
  • Fidelity National Financial30.36-0.41 -1.33%
  • First American31.55+0.11 +0.35%
  • AUDUSD=X0.8693N/A N/A
  • USDJPY=X117.775N/A N/A
  • WP Stock Ticker
Home | News | Foreclosure | Freddie Mac’s Delinquencies Decline for Fourth Straight Month
Print This Post Print This Post

Freddie Mac’s Delinquencies Decline for Fourth Straight Month

The percentage of home loans going unpaid is steadily declining for the nation's second largest mortgage company. Freddie Mac reported Tuesday that its single-family seriously delinquent rate decreased to 3.63 percent in March. That's down 15 basis points from 3.78 percent in February, and the fourth consecutive month that the rate has headed south. With only a few intermittent blips upward over the last year, Freddie has recorded a drop in its seriously delinquent rate in nine of the past 12 months.

The percentage of home loans going unpaid is steadily declining for the nation's second largest mortgage company.
[IMAGE]

""Freddie Mac"":http://www.freddiemac.com reported Tuesday that its single-family seriously delinquent rate decreased to 3.63 percent in March. That's down 15 basis points from 3.78 percent in February.

It's the fourth consecutive month that the GSE has seen serious delinquencies â€" loans that are 90 or more days past due â€" head south.

With only a few intermittent blips upward in the rate over the last year, Freddie has recorded a drop in its seriously delinquent rate in nine of the past 12 months.

Rep. Darrell Issa (R-California), chairman of the House Committee on Oversight and Government Reform, sent a

[COLUMN_BREAK]

letter last month to Edward DeMarco, acting director of the ""Federal Housing Finance Agency"":http://www.fhfa.gov which oversees the McLean, Virginia-based Freddie Mac and its sibling GSE ""Fannie Mae"":http://www.fanniemae.com in Washington, D.C.

Issa requested DeMarco send him documentation on home loans purchased by the two mortgage giants and the underwriting standards in place over the last two years in order to assess if Freddie and Fannie were in the business of scooping up high-risk, low-quality mortgages.

Officials at Freddie Mac have maintained that the new single-family business the company acquired in 2009 and 2010 “continues to demonstrate strong credit quality based on borrower credit scores and loan-to-value ratios.”

In a report issued last week protesting the lack of credit available to homebuyers these days, the ""National Association of Realtors"":http://www.realtor.org cited data showing that the average credit score for both Freddie Mac- and Fannie Mae-backed mortgages has risen to 760, up from 720 in 2007 â€" new lending criteria that Freddie officials say is helping to mitigate delinquencies.

In its ""monthly summary report"":http://www.freddiemac.com/investors/volsum/pdf/0311mvs.pdf for March, Freddie also stated that its loan modifications totaled 12,141 last month and 35,158 for the three months ended March 31, 2011.

The GSE also reported that single-family refinance-loan purchase and guarantee volume was $19.4 billion in March, reflecting 72 percent of the month’s total mortgage purchases and issuances.

Bookmark and Share

About Author: Carrie Bay

Carrie Bay
Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

Leave a Reply

Scroll To Top