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Fannie Mae, Freddie Mac Bring Foreclosure Prevention Total to 3.56 Million

avoid-foreclosureFannie Mae and Freddie Mac completed another 19,485 foreclosure prevention actions in July, according to the FHFA's July 2015 Foreclosure Prevention Report released Thursday.

The total of foreclosure prevention actions completed by the GSEs in July was more than double the number of foreclosure sales executed during the month (9,316), according to FHFA.

With July's total of nearly 20,000 foreclosure prevention actions, the Enterprises have now completed 3.56 million such actions since the start of the conservatorship in September 2008, according to FHFA. More than half of those 3.56 million foreclosure prevention actions (1.84 million) have been permanent loan modifications. There were 12,237 permanent loan mods completed in July, about 63 percent of the foreclosure prevention actions.

Improved house prices and a declining HAMP-eligible population resulted in a decline in modifications with extend-term only down to 48 percent in July. Meanwhile, the share of modifications with principal forbearance dropped to 18 percent.

10-8 FHFA graph 2About 1,000 fewer foreclosure prevention actions were completed in July than in June (20,435 compared to 19,485). According to FHFA, 3,122 of the foreclosure prevention actions in July were home forfeiture actions (short sales and deeds-in-lieu of foreclosure). While the number of overall foreclosure preventions declined month-over-month, the number of home forfeiture actions within that category slightly increased (from 3,094 in June to 3,122 in July).

The serious delinquency rate on mortgages backed by Fannie Mae and Freddie Mac declined by another four basis points from June to July, from 1.61 percent down to 1.57 percent. The number of foreclosure starts on GSE-backed mortgages declined substantially by 13 percent, from 22,303 down to 19.481.

Click here to view the FHFA's full report.

10-8 FHFA graph

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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