Fannie Mae and Freddie Mac have completed approximately 3.3 million foreclosure prevention actions since the start of the conservatorship in September 2008, according to the Federal Housing Finance Agency's Q3 Foreclosure Prevention Report released Monday. About 2.8 million of those 3.3 million foreclosure prevention actions helped the borrowers stay in their homes, including 1.7 million who received assistance in the form of permanent loan modifications.
Other foreclosure prevention actions completed that have kept borrowers in their homes included repayment plans, forbearance plans, charge-offs-in-lieu, and HomeSaver Advance from Fannie Mae. The REO inventory of Fannie Mae and Freddie Mac declined by 9 percent during Q3 down to 120,000, as dispositions outpaced acquisitions. Also, about 34 percent of all permanent loan modifications borrowers received in the third quarter reduced monthly payments by more than 30 percent.
Ocwen's year-long difficulties with New York's Department of Financial Services have ended with a $150 million settlement and the departure of its executive chairman, the company announced Monday. The Atlanta-based firm has agreed to pay a civil monetary penalty of $100 million to DFS by the end of this year along with an additional $50 million as restitution to harmed borrowers. As part of the settlement, founder and executive chairman Bill Erbey will step down from his post in January, ending nearly 30 years of service to the company.