Fannie Mae and Freddie Mac Loan Modifications Up By More Than 50 Percent in First Quarter
Washington, DC - June 25, 2009 - (RealEstateRama) — Fannie Mae and Freddie Mac modified nearly 37,000 loans during the first quarter of 2009. It is an increase of 57 percent over the fourth quarter of 2008 and more than double the number of modifications in the first quarter of last year. The data were released by James B. Lockhart, Director of the Federal Housing Finance Agency, as part of the Foreclosure Prevention Report for the first quarter of 2009.
The FHFA report details the actions Fannie Mae and Freddie Mac have taken to prevent foreclosures and keep people in their homes. The report reflects loan modification volumes under the Streamlined Modification Program initiated in November 2008 but does not include volumes from the Home Affordable Modification program (HAMP) announced in March 2009 which was still in development in March.
“The use of serious loan modifications by Fannie Mae and Freddie Mac has risen dramatically,” said Director Lockhart. “As a result, more homeowners are seeing payments significantly reduced and fewer people will lose their homes.”
The report shows that as of March 31, 2009, of the Enterprises’ 30 million residential mortgages:
- Modifications represented 43 percent of all completed foreclosure prevention actions in the first quarter of 2009, up from 33 percent in the prior quarter.
- Modifications with more than 20 percent reduction in monthly payments rose from 2 percent in the first quarter of last year to 52 percent in the first quarter of this year
- Completed actions to prevent foreclosure- including modifications, forebearance, repayment plans and other measures– rose substantially in the first quarter. Approximately 87,000 of these actions were completed in the quarter, an increase of 20 percent over the prior quarter and more than double the volume of the first quarter 2008.
- Home retention actions – actions that result in a borrower keeping his or her home – accounted for 90 percent of these actions completed during the first quarter consistent with the proportions of foreclosure prevention actions completed over the past year.
- Fannie Mae and Freddie Mac own or guarantee 56 percent of all mortgages outstanding but only 22 percent of all seriously delinquent loans.
- Although the Enterprises’ mortgage delinquencies continued to increase during the first quarter of 2009, the rate of delinquency is consistently lower than the industry average. As of March 31, 2009, the percentage of Enterprises’ mortgage loans that were at least two payments past due (60 plus days delinquent) was 3.6 percent, compared with 6.1 percent for VA loans, 10.2 percent for FHA loans and 9.2 percent for the industry average.
“We encourage servicers to work aggressively to continue to identify borrowers who are willing and able to make affordable mortgage payments,” said Lockhart. “These efforts at modifying mortgages and refinancing homeowners into safer mortgages are important elements of the stabilization of the housing market and the U.S. economy. ”
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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions.
Contact:
Corinne Russell
(202) 414-6921
Stefanie Mullin
(202) 414-6376
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Comments
I have loan with fannie mae and my servicer is indymac. I applied for loan modification in march and got approved and put me in trial period plan and reduced only $100. I made one trial period payment and received another letter for loan Modification and was told do not make trial period and this is your new plan. I made two payment in sep. And oct. And then iwas told your modification has denied. Every time I call get different news. Anyhow I was told apply again , I did and awaiting for the result.
I am with indymac, applied for loan mod received a trial period of three months with a lower payment, it has been four months. Last month was told it looks good and I have been approved for modification and will receive the paper work in 30-60 days keep making the trial payment amount. Called yesterday and was told that I was denied the modification. What I did not know is that during the trial period the late charges, and admin fees keep adding up. It seems that they string you along keep adding up fees and get some money out of you and then “denied”. I am meeting with an attorney next week.
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I feel like what the government and Obama promised just is not happening. The whole plan was to prevent over 4 million home owners from losing their homes. I don’t know where these 4 million are. There are huge neighborhoods by my house that are almost all facing foreclosures and they say that the banks just were not helping them prevent this but they were just covering their bases. Well if that is what is happening what happened to the huge bail out the government gave the banks to prevent this?
My friend was recently facing foreclosure and he went through http://www.Carrotpeel.com with an on staff attorney to help him out. He did not have any luck with the bank and he said they were able to work with the banks for him and save his home by lowering his monthly payments.
I hope there are some people out there who are having luck with the banks and that some of the stimulus money was spent like it was suppose to and not big corporate bonuses.