Fannie Mae and Freddie Mac HARP Refinancings Increase in Third Quarter; Performance of Modified Loans Improves

Fannie Mae and Freddie Mac HARP Refinancings Increase in Third Quarter; Performance of Modified Loans Improves

Washington, DC – December 21, 2010 – (RealEstateRama) — Refinancings through the Home Affordable Refinance Program (HARP) increased 26 percent in the third quarter of 2010. Fannie Mae and Freddie Mac loan modifications through the Home Affordable Modification Program (HAMP) increased 16 percent in the quarter, although the overall volume of loan modifications and the pace of HAMP modifications declined from previous periods. The data were released in FHFA’s Third Quarter 2010 Foreclosure Prevention & Refinance Report, which includes data on all of the Enterprises’ foreclosure prevention efforts.

Findings of the Report include the following:

  • Loans modified in the last three quarters are performing substantially better three months after modification, compared to loans modified in earlier periods.
  • More than half of the loan modifications completed in the third quarter lowered borrowers’ monthly payments by over 30 percent.
  • Loans that are 30-days delinquent increased by 17,600 loans or 2.7 percent during the third quarter to approximately 682,000.
  • Loans 60-plus-days delinquent declined for the third consecutive quarter. The 60-plus-days delinquent loans decreased by 109,700 loans, or 6.8 percent during the third quarter to approximately 1.5 million.
  • Nearly 35,400 HAMP trial modifications transitioned to permanent during the third quarter bringing the total number of active HAMP permanent modifications to nearly 260,000.

Link to Foreclosure Prevention & Refinance Report- Third Quarter 2010

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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 $5.9 trillion in funding for the U.S. mortgage markets and financial institutions.

Contact:
Corinne Russell
(202) 414-6921

Stefanie Johnson
(202) 414-6376

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FHFA

The Federal Housing Finance Agency (FHFA) was created on July 30, 2008, when the President signed into law the Housing and Economic Recovery Act of 2008.  The Act created a world-class, empowered regulator with all of the authorities necessary to oversee vital components of our country’s secondary mortgage markets – Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.  In addition, this law combined the staffs of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB), and the GSE mission office at the Department of Housing and Urban Development (HUD).

Contact:

1700 G Street, NW
4th Floor
Washington, DC 20552
Phone: (866) 796-5595

Corinne Russell
(202) 414-6921
Stefanie Mullin
(202) 414-6376

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