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GSEs Total 2 Million Foreclosure Prevention Actions

Servicers for ""Fannie Mae"":http://fanniemae.com/portal/index.html and ""Freddie Mac"":http://www.freddiemac.com/ have completed almost 2 million foreclosure prevention actions for the two companies since they went into conservatorship in 2008, according to the ""Federal Housing Finance Agency's"":http://www.fhfa.gov/ (FHFA) third-quarter report.
[IMAGE] More than half of these actions have been loan modifications, and of the remainder, about 676,500 have kept homeowners in their homes. About 269,700 were short sales or deeds in lieu.

The number of loans modified by the GSEs in the third quarter was 3 percent higher than that of the second quarter. The GSEs modified 83,600 loans during the third quarter.

About two-thirds of loan modifications completed during the third quarter included repayment reductions of more than 20 percent.


Fannie and Freddie also completed 48,900 repayment plans and 7,000 forbearance plans in the third quarter.

The number of borrowers in HAMP trial periods declined from 51,000 at the end of the second quarter to 42,300 at the end of the third quarter.

The FHFA says this decline occurred as borrowers completed their trial modifications and received permanent modifications.

About 22,600 trial modifications graduated into permanent modifications in the third quarter.

The total number of loans modified under HAMP since its inception falls just short of 400,000 at 380,300.

The GSEs also increased the number of loans refinanced under the Home Affordable Refinance Program (HARP) in the third quarter.

HARP refinancings increased 11 percent over the quarter, bringing the total to 928,600.

Additionally, over the third quarter, the GSEs saw serious delinquency rates decline from 3.85 percent to 3.81 percent.

However, the percentage of homeowners between 30 and 59 days delinquent increased from 2.04 percent in the second quarter to 2.07 percent in the third quarter.

REO inventory decreased from 196,000 to 182,000 over the quarter.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.

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