FHFA Releases New Mortgage Metrics Report

Posted by Orb Staff on October 23, 2008 No Comments
Categories : Mortgage Servicing

The Federal Housing Finance Agency (FHFA) has released its Mortgage Metrics Report for the second quarter of 2008.

The report presents key performance data on 30.6 million first-lien residential mortgages with outstanding balances totaling $4.5 trillion serviced on behalf of Fannie Mae and Freddie Mac for the first and second quarters of 2008. It summarizes data provided by Fannie Mae and gives a comprehensive view of efforts to assist borrowers, including forbearance plans, short sales, deeds in lieu, assumptions and charge-offs in lieu of foreclosure.

According to the FHFA, the loss mitigation performance ratio for prime mortgages decreased from 43.7% in the first quarter of 2008 to 37.2% in the second quarter of 2008. Loss mitigation actions that allowed prime borrowers to avoid foreclosure and retain the property, such as payment plans, loan modifications and charge-offs, represented 90.3% of loss mitigation actions in the first quarter of 2008 and 83.5% of loss mitigation actions in the second quarter.

Source: Federal Housing Finance Agency

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FHFA Releases New Mortgage Metrics Report

Posted by Orb Staff on September 26, 2008 No Comments
Categories : Mortgage Servicing

The Federal Housing Finance Agency (FHFA) has released its first Mortgage Metrics Report. This document features key performance data on 30.4 million first-lien residential mortgages with outstanding balances totaling $4.4 trillion serviced on behalf of Fannie Mae and Freddie Mac from 2007 through the first quarter of 2008.

The report focuses on the delinquencies, loss mitigation actions and foreclosure data reported by more than 3,000 approved servicers. FHFA notes that it compiled data on all loss mitigation actions – not just payment plans and modifications as other industry participants are doing. Borrower assistance efforts covered include forbearance plans, short sales, deeds in lieu, assumptions and charge-offs in lieu of foreclosure.

In addition, FHFA introduced a loss mitigation performance ratio as a measure of the extent of the agencies' efforts to assist borrowers at risk of losing their homes to foreclosure. This metric allows for a ready comparison of loss mitigation performance over a different time period, regardless of changes to delinquency rates.

FHFA says it will continue to work closely with HOPE NOW and other financial regulators and industry participants to refine and standardize nonperforming loan definitions and metrics. The agency also will continue to issue updated quarterly reports and will introduce monthly reports detailing loss mitigation activities to complement the quarterly reports.

Source: Federal Housing Finance Agency

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