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GSEs’ Foreclosure Prevention Efforts Slip in First Quarter
Posted By Carrie Bay On June 6, 2011 @ 5:43 pm In Foreclosure,Government,Loss Mitigation,Secondary Market | No Comments
Foreclosure prevention actions on loans held by ""Fannie Mae"":http://www.fanniemae.com and ""Freddie Mac"":http://www.freddiemac.com declined during the first three months of this year, driven primarily by decreases in loan modifications and repayment plans.[IMAGE]
The ""Federal Housing Finance Agency"":http://www.fhfa.gov (FHFA) issued a report Monday detailing efforts by the GSEs and their servicers during the first quarter to resolve delinquent single-family mortgages.
Completed foreclosure prevention actions Ã¢â‚¬" which include home retention initiatives such as loan mods and repayment plans, as well as home forfeitures through short sales and deeds-in-lieu Ã¢â‚¬" totaled 171,531 during the January to March timeframe, compared to 208,416 in the previous quarter.
Permanent loan modifications, including those processed through the Home Affordable Modification Program[COLUMN_BREAK]
(HAMP), declined for the third consecutive quarter to 86,201. ThatÃ¢â‚¬â„¢s down from 119,778 during the fourth quarter of 2010.
Short sales and deeds-in-lieu of foreclosure were essentially the same as the previous quarter at 25,705 and 1,849, respectively.
According to ""FHFA's latest report"":http://www.fhfa.gov/webfiles/21518/1q11_fpr_final.pdf, even with the drop-off in loss mitigation actions Fannie and Freddie's delinquency rates ""remain below industry levels.""
Between the two companies, they held 553,000 loans 30-59 days past due as of the end of March. Loans beyond this initial bucket Ã¢â‚¬" including 60-plus day delinquencies and those already in foreclosure Ã¢â‚¬" stood at 1,382,000 million. Of these, 1,197,000 were classified as seriously delinquent or in foreclosure.
The analysts at ""Barclays Capital"":http://www.barcap.com note that Fannie and FreddieÃ¢â‚¬â„¢s delinquency roll rates have declined 20 to 30 percent year-over-year.
Ã¢â‚¬Å“We expect the trend to continue absent a shock to macroeconomic factors,Ã¢â‚¬Â they said in a report issued Monday.
In the first quarter, the GSEs' foreclosure starts declined while completed third-party and foreclosure sales increased.
Foreclosure was initiated on 260,000 GSE loans in Q1, compared to 310,000 in Q4. Completed foreclosures totaled 88,000, compared to 77,000 during the previous quarter.
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