Fannie Mae and Freddie Mac loan modifications jumped 50% last October and November when compared to the two previous months, according to the Federal Housing Finance Agency's (FHFA) Foreclosure Prevention Report for November.
In its report, the government-sponsored enterprises' conservator notes that because Fannie Mae and Freddie Mac's foreclosure sales and evictions suspension began in late November, the initiative only minimally impacted the month's performance. The FHFA expects the impact of the suspension will be greater for performance to be reported for December and January.
The report shows that as of Nov. 30, 2008, of the enterprises' 30.6 million residential mortgages, loans 60-plus days delinquent (including those in bankruptcy and foreclosure) as a percent of all loans increased from 2.21% as of Sept. 30 to 2.39% for October and 2.73% for November. For loans that were 90-plus days delinquent (again, including those in bankruptcy and foreclosure) as a percent of all loans, increased from 1.52% in September to 1.67% for October and 1.88% for November.
Modifications completed increased from a monthly average of 2,883 for 2007, 5,218 for the first quarter, 5,129 for the second quarter and 4,497 for the third quarter to 5,600 for October and 8,291 for November. Compared with the monthly average of 4,948 for the first nine months of 2008, October modifications increased by 13.2% and November by 67.6%.
The loss mitigation ratio for November was 61.7% – the highest since June 2008, which was reported at 64.8%. The year-to-date loss mitigation ratio is 55.2%.