The number of foreclosure prevention activities completed by Fannie Mae and Freddie Mac has continued to decrease, according to the FHFA ’s May 2016 Foreclosure Prevention Report released Tuesday as the number of nationwide foreclosures continues its decline since reaching peak levels in 2009 and 2010.
In May of 2016, the GSEs completed 15,283 foreclosure prevention activities, over half of which (9,838) were loan modifications including HAMP permanent modifications. May’s total activities brought the total number of foreclosure prevention actions completed by the GSEs to 3,724,545 since the conservatorships began in September 2008.
Despite the total activities completed since that origination date, the number has been on the decline for a few years along with foreclosure volume. For example, in 2012, Fannie Mae and Freddie Mac completed a total of 940,974 foreclosure prevention actions between them. That number fell to 789,627 the next year and down to 561,312 for 2014. For 2015, the pace fell to 428,881 and through the first six months of 2016, the number is 150,391.
In May the number of home retention actions recorded by the GSEs, which included loan modifications, repayment plans, and forbearance plans, totaled 13,089, down from 13,960 in April. The number of home forfeiture actions, which included short sales and deeds-in-lieu of foreclosure, was also down over the month in August from 2,280 to 2,194, a decline of 4 percent.
The number of permanent loan modifications also declined from April to May, from 10,784 to 9,838. The share of modifications with principal forbearance increased slightly from April to May up to 19 percent. According to the report, improved house prices and a declining Home Affordable Modification Program (HAMP)-eligible population resulted in a drop in the share of modifications with extend-term only down to 47 percent of all modifications.
The number of foreclosure starts on GSE-backed residential mortgage loans increased 6 percent from 17,665 in April to 19,726 in May, and likewise, the number of third-party and foreclosure sales increased 3 percent over the month in May from 7,595 to 7,849.
The combined serious delinquency rate (mortgage loans 90 days or more past due) on loans backed by the GSEs declined only slightly from April to May (1.31 percent down to 1.28 percent).
Click HERE  to see the FHFA’s complete foreclosure prevention report for May.