Tag Archives: Loan Modifications

What solutions have Fannie Mae and Freddie Mac offered to HAMP borrowers facing higher monthly payments due to resets?

The improved credit quality of mortgage loans originated post-crisis has resulted in fewer delinquencies and defaults, which in turn has resulted in a substantial decline in loan modifications industry-wide.

How are delinquent residential single-family mortgage loans modified by Fannie Mae performing after their modifications? The industry is about to find out.

The Making Home Affordable program is beginning to wind down; how successful has the program been at helping homeowners avoid foreclosure and remain in their homes?

The majority of the amount credited in the second quarter ($1.7 billion) went to modification of 9,671 loans. Another $186 million of the amount credited in Q2 went to extend 16,231 new home loans to borrowers in HUD-designated hardest-hit areas, borrowers who lost their homes to short sales or foreclosures, and low- and moderate-income borrowers.

Single-family mortgage loans backed by Fannie Mae and Freddie Mac perform better after modification when they are modified through the government's Home Affordable Mortgage Program (HAMP), according to the FHFA's Foreclosure Prevention Report for Q2 2015 released this week.

The mortgage industry reported about 122,000 non-foreclosure solutions (including short sales, deeds-in-lieu of foreclosure, and other workout plans) for July, while about 29,000 foreclosures were completed.

Ambiguity and/or delays in the loan modification process were a frequent subject of the complaints, while others said they were not considered for all loss mitigation options available, they were incorrectly denied a modification, or the terms of the modification were unfavorable.

According to Treasury's Making Home Affordable Program Performance Report for Q1 2015, approximately 2.3 million homeowners had started HAMP trial modifications in the six-year existence of the program.

Foreclosure activity declined substantially year-over-year in Q1. The number of properties in the process of foreclosure as of the end of the quarter dropped down to 299,424, a decline of 30.8 percent from the same quarter a year earlier. The nearly 300,000 loans in the process of foreclosure during Q1 comprised about 1.3 percent of the loans in the portfolio.