FHFA Reports Mod, Foreclosure Numbers

The ""Federal Housing Finance Agency"":http://www.fhfa.gov (FHFA) released its latest ""Foreclosure Prevention Report"":http://www.fhfa.gov/webfiles/14588/April_Foreclosure_Prevention71509F.pdf on Wednesday, detailing actions taken by ""Fannie Mae"":http://www.fanniemae.com and ""Freddie Mac"":http://www.freddiemac.com to prevent foreclosures and keep people in their homes.
The numbers should be prefaced by noting that the report includes loan modification data under FHFA’s Streamlined Modification Program (SMP), which was initiated in November 2008 but ended in April 2009. The report does not include data on refinancings or modifications made as part of the administration’s Making Home Affordable Program announced in March.
The report shows that approximately 13,800 loan modifications were completed on the GSEs’ residential mortgages in April, down 12 percent from March, as the enterprises began implementing the Home Affordable Modification Program (HAMP). Modifications under HAMP require a three-month trial and are not counted as completed until after the 90-day period.
Loan modifications accounted for 48 percent of Fannie and Freddie’s foreclosure prevention actions in April, compared to 47 percent in March. FHFA reported that 75 percent of loans modified in April involved both rate reductions and term extensions, up from 73 percent in March.
Completed short sales and deeds in lieu increased 15 percent to nearly 4,000, more than three times the volume one year earlier.
According to FHFA’s report, delinquencies on the GSEs’ loans continued to increase in April, as approximately 71,700 more homeowners fell behind on their payments by 60 days or more. With these new defaults, the total number of loans 60-plus-days delinquent reached 1.2 million in April, an increase of 7 percent compared to March.
The GSEs’ foreclosure starts in April declined 3 percent from March, to nearly 85,900. Foreclosure starts were lower in April as servicers began to temporarily suspend foreclosure actions to determine delinquent borrowers’ eligibility for an HAMP modification. If a borrower is determined to be ineligible for HAMP, the servicer is required to consider other alternatives to prevent foreclosure, such as short sales and deeds in lieu.
FHFA reported that foreclosure and third-party sales increased to 14,200 in April, up from 9,300 in March. The agency said the increase was driven by sales of non-occupied properties.