GSEs Have Prevented Approximately 3.5 Million Foreclosures

Posted by Patrick Barnard on September 28, 2015 No Comments
Categories : Mortgage Servicing

Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have completed 63,593 foreclosure prevention actions in the second quarter of this year – bringing the total number of foreclosure prevention actions to over 3.5 million since the start of the conservatorships in 2008, according to the Federal Housing Finance Agency's (FHFA) latest Foreclosure Prevention Report.

The FHFA says that these measures have helped more than 2.9 million borrowers to stay in their homes, including more than 1.8 million who received permanent loan modifications.

Highlights from the report include the following:

  • The GSEs' real estate owned (REO) inventory decreased 14% during Q2 to 86,515 – marking the first time REO inventory has been below 100,000 since 2009;
  • The number of loans that are 60 days or more delinquent decreased 6% during the quarter;
  • Roughly 31% of all permanent loan modifications helped to reduce homeowners' monthly payments by over 30%; and
  • The serious delinquency rate of Fannie and Freddie loans fell to 1.6% at the end of Q2.

To read the full report, click here.

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