FHFA: Foreclosure Prevention Actions Fell In Q2 As Delinquencies Declined

Posted by Patrick Barnard on September 29, 2014 No Comments
Categories : Mortgage Servicing

About 80,000 foreclosure prevention actions were completed by Fannie Mae and Freddie Mac in the second quarter, down from about 89,000 completed in the first quarter, according to the Federal Housing Finance Agency's (FHFA) quarterly Foreclosure Prevention Report.

Of those, about 49,000 were loan modifications, including both proprietary loan modifications and those completed through the Home Affordable Modification Program (HAMP). About 13,000 were repayments plans; about 3,000 were forbearance plans; and about 486 were charge-off-in-lieu plans. About 11,000 were short sales and about 4,000 were deed-in-lieu deals. In addition, about 14,500 home forfeiture actions were completed.

The number of HAMP active trials, as of the second quarter, was about 9,000. The number of homeowners with active permanent modifications under HAMP was about 430,000.

The FHFA's report measures foreclosure prevention efforts via Fannie Mae and Freddie Mac. Recently, nonprofit HOPE NOW reported that a total of about 157,000 homeowners received some type of foreclosure prevention relief in the month of July. Of those, about 112,000 were workouts.

Altogether about 3.3 million homeowners have received foreclosure prevention actions through Fannie Mae and Freddie Mac servicers since the start of the conservatorships in September 2008, according to the FHFA. These measures have helped about 2.7 million borrowers stay in their homes, including nearly 1.7 million who received permanent loan modifications.

Delinquencies continued to decline in the second quarter: According to the FHFA, the number of loans that were 90-plus days overdue (seriously delinquent) fell to about 577,000, compared to about 619,000 in the first quarter. Similarly, the number of loans that were 60 to 89 days overdue fell to 688,000, down about 5% from 724,000 in the first quarter.

In fact, the number of loans 60 to 89 days delinquent declined to reach the lowest level since the start of conservatorships, according to the report.

The number of loans that were 30 to 59 days overdue, however, increased to about 414,000 in the second quarter, up from about 391,000 in the first quarter.

Third-party sales and foreclosure sales fell 10% in the second quarter to 42,800, while foreclosure starts increased slightly.

The real estate owned inventory of Fannie Mae and Freddie Mac declined 10% during the second quarter to approximately 131,500, as property dispositions outpaced property acquisitions.

To view the full report, click here.

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