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Freddie Mac’s Serious Delinquencies Continue Descent

The nation's second largest mortgage company has again reported a decline in the percentage of loans it holds that are 90 or more days past due and in foreclosure.
[IMAGE] ""Freddie Mac"":http://www.freddiemac.com says its serious delinquency rate for single-family mortgages dropped to 3.53 percent in May.

That's down four basis points from 3.57 percent the month before and down 53 basis points from 4.06 percent in May 2010.

Freddie's serious delinquencies have been on a steady decline for more than a year now. May's rate was the lowest it's been since September of 2009.

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The McLean, Virginia-based GSE reports that 8,891 modifications were completed on loans it holds last month.

For the five months ended May 31, 2011, loan mods total 55,398.

Both Freddie Mac and ""Fannie Mae"":http://www.fanniemae.com have announced that they are ""aligning their servicing guidelines"":http://dsnews.comarticles/gses-issue-new-servicing-guidelines-for-delinquent-mortgages-2011-04-28 for handling past-due mortgages, with a primary goal of ensuring servicers are working with borrowers on a resolution early in the process so that fewer loans find their way to the serious delinquency stage.

Fannie ""laid out the specifics"":http://dsnews.comarticles/fannie-mae-issues-new-servicing-standards-for-delinquent-mortgages-2011-06-06 of its new guidelines earlier this month, with phased effective dates for each piece of the plan.

Freddie’s new procedures are expected to mirror those of its sister company and should be issued later this summer.

Freddie Mac’s ""latest monthly summary report"":http://www.freddiemac.com/investors/volsum/pdf/0511mvs.pdf also showed that the GSE’s total mortgage portfolio decreased at an annualized rate of 3.5 percent in May to $2.13 trillion.

Single-family refinance volume was $13.3 billion in May, reflecting 58 percent of the company’s total mortgage purchases and issuances.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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