Highlights from the Federal Housing Finance Agency information to ponder
Fannie Mae and Freddie Mac Implement HAMP During Second
Quarter; Trial Loan Mods Ramp Up
as
Completed Loan Mods Decline
October 2, 2009
The report shows that of the Enterprises' 30 million residential mortgages:
• Trial loan modifications under HAMP more than tripled from June to August, from
66,200 to 202,200.
• Completed actions to prevent foreclosure declined by 25 percent to approximately
58,200 during the second quarter as HAMP trial loan modifications replaced traditional
loan modifications and repayment plans in process. Completed loan modifications
decreased by 13 percent over the prior quarter to 32,300.
• Fifty-four percent of loan modifications completed in the second quarter resulted in
borrowers' payments decreasing by 20 percent or more, compared with only 8 percent
one year earlier.
• Short sales increased by 45 percent during the second quarter to 11,700 as the pipeline
of serious delinquent loans increased and Freddie Mac increased the delegated
authority of servicers to implement short sales.
• As short sales increased and loan modifications declined, completed home retention
actions - actions that result in a borrower keeping his or her home -accounted for 82
percent of all foreclosure prevention actions completed during the second quarter, down
from 90 percent in the first quarter.
• Mortgage delinquencies continued to increase during the quarter as higher levels of
unemployment contributed to new delinquencies. Foreclosure moratoria associated
with HAMP have also contributed to the increase in delinquencies as fewer seriously
delinquent loans are transitioning to foreclosure.
• Although the Enterprises' mortgage delinquencies continued to increase during the
second quarter of 2009, the rate of delinquency is consistently lower than the industry
average. As of June 30, 2009, the percentage of Enterprises' mortgage loans that were
at least two payments past due (60 plus days delinquent) was 3.5 percent, compared
with 4.7 percent for VA loans, 7.8 percent for FHA loans and 8.0 percent for the
industry average.
Top Five Reasons for Delinquency 1st qt2009 2nd qt 2009
Curtailment of Income 35% 40%
Excessive obligations 19% 18%
Unemployment 8% 9%
Illness of principal mortgagor or family member 6% 6%
Marital Difficulties 3% 3%
Mortgage Performance
Loans that are only one month delinquent increased by 11 percent during the second
quarter to 682,000.
Loans 60-plus-days delinquent increased by 21 percent during the second quarter to 1.3
million. Approximately 227,200 more loans became 60 days or more delinquent in the
second quarter of 2009.
Foreclosures
Foreclosure starts increased in the second quarter by 23 percent over the prior quarter to
299,200, reflecting increases in the foreclosure pipeline as the number of 90-plus-days
delinquent loans increased. Although HAMP requires foreclosure activities to be
temporarily suspended during the trial period or while a borrower is considered for
alternative foreclosure prevention options, the foreclosure process is initiated for vacant
and non-owner occupied properties, and properties determined to be ineligible for HAMP.
Completed foreclosure and third-party sales during the quarter increased by 38 percent to
57,800 generally driven by sales on non-occupied properties and owner-occupied properties already determined to be ineligible for HAMP.
If you wish to read the whole report here is the link
http://www.fhfa.gov/webfiles/15055/2Q09ForeclosurePrevention100209F.pdf
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