February Foreclosure Sales Jump At GSEs

Posted by Orb Staff on May 14, 2009 No Comments
Categories : Mortgage Servicing

Mae and Freddie Mac's moratorium on foreclosure sales early this year did little more than temporarily dam the flood of sales, according to [link=http://www.fhfa.gov/webfiles/2312/Feb%202009%20Foreclosure%20Prevention%20FINAL.pdf][u]data[/u][/link] released by the Federal Housing Finance Agency (FHFA). Completed foreclosure sales shot up following the moratorium's expiration at the end of January. During the two-week period in early February that the suspension was lifted, 28,897 foreclosure sales were completed (from 3,222 in January), the FHFA says. A second moratorium was enacted in mid-February, and it ran through March 6. The agency also notes that completed foreclosure prevention actions increased by 9% in February, with loan modifications growing by 26%, and repayment plans growing by 38%. Loan mods constituted 43% of all complete foreclosure prevention actions, and about 70% of the modifications included both interest-rate reductions and term extensions. Loans that had only their terms extended totaled 18% of all modifications, while rate reductions on their own accounted for 4%. ‘Other’ types of modifications totaled 8% of all mods. Short sales and deeds in lieu accounted for approximately 9% of all completed foreclosure prevention actions, according to the FHFA. Credit quality, meanwhile, continued to decline in February, as approximately 41,000 more loans became 60 days or more delinquent. Loans 60 days+ delinquent increased by approximately 4% in February to 1.1 million. One in 10 nonprime loans was 60 days+ delinquent at the end of February compared with two in 100 prime loans. Non-prime loans were 16% of the total 30.2 million loans. SOURC

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