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Both foreclosure completions and foreclosure starts on Fannie Mae and Freddie Mac loans continued their steady decline in the third quarter, according to the Federal Housing Finance Agency's Q3 Foreclosure Prevention Report released earlier this week. The GSEs completed 39,000 foreclosures in Q3, down 9 percent from Q2. This number hit its peak in Q3 2010 with 138,000 and has decreased every quarter since Q3 2012. Foreclosure starts declined by 13 percent down to 75,000 in Q3, and with only a few exceptions, have declined in every quarter since hitting their peak of 339,000 in Q3 2010.
The total of 60-day delinquent loans in Q3 on GSE-backed mortgages was at its lowest level since the conservatorships began in September 2008. About 666,000 such delinquent loans were reported for Q3, and the number has steadily declined every quarter since hitting a peak of 1.77 million in Q4 2009. The number of 60-day delinquent GSE-backed mortgage loans totaled 926,000 in Q4 2008, the first full quarter after the conservatorships began.
The Federal Housing Finance Agency has released a statement warning organizations that label mortgage loans with "super-priority lien" status that such loans will not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. The warning was aimed mainly at energy retrofit financing programs and homeowners associations that attach super-priority lien status to mortgages because of the risk they pose to taxpayers while Fannie Mae and Freddie Mac are under conservatorship.
