With the slowing of loan modification activity in the last couple of years, the number of permanent loan modifications offered by the industry since the third quarter of 2007 is essentially equal to the number of liquidations completed during the same period, according to data from the Urban Institute and HOPE NOW. The improved credit quality of mortgage loans originated post-crisis has resulted in fewer delinquencies and defaults, which in turn has resulted in a substantial decline in loan modifications industry-wide.
According to HOPE NOW, the number of permanent modifications completed by the industry since Q3 2007 was 7 point 784 million as of February 2016, compared with 7 point 987 million liquidations completed during the same period. The number of non-foreclosure solutions outpaced the number of completed foreclosures during Q1 by a ratio of about three and a half to one.
Freddie Mac priced its fifth offering through the Structured Agency Credit Risk program this year and 22nd overall was priced at 795 million dollars, according to an announcement from Freddie Mac on Wednesday. The program began in July 2013 as a way for Freddie Mac to transfer a portion of credit risk on single-family loans to investors in the private capital market. The latest offering includes a reference pool of newly acquired single-family mortgages with an aggregate UPB of approximately 26 billion dollars.