Fannie Mae’s and Freddie Mac’s foreclosure prevention activity increased in the third quarter of 2011 and totaled nearly two million foreclosure prevention actions since the beginning of conservatorship by the Federal Housing Finance Agency (FHFA) in 2008. During this period, the government-sponsored enterprises (GSEs) completed one million loan modifications, helping borrowers stay in their homes.
According to the FHFA’s third quarter 2011 Foreclosure Prevention & Refinance Report, the increase in completed foreclosure prevention activity in the third quarter was driven primarily by loan modifications and repayment plans. Two-thirds of all borrowers who received loan modifications in Q3 had their monthly payments reduced by over 20 percent. Additionally, the GSEs' cumulative refinancings through the Home Affordable Refinance Program (HARP) increased 11 percent during the third quarter to nearly 928,600 loans.
Other findings in the 2011 Foreclosure Prevention & Refinance Report include:
►The GSEs have completed nearly two million foreclosure prevention actions since the start of conservatorship. Nearly 1.7 million of these actions have allowed borrowers to retain homeownership, with more than one million being permanent loan modifications.
►Loans modified since the start of HAMP are performing substantially better compared with loans modified in earlier periods.
►Serious delinquency rates continued to decline. However, the percentage of loans that have missed one payment increased during Q3 of 2011.
►Real estate-owned (REO) inventory declined for the fourth consecutive quarter as property dispositions continued to outpace acquisitions in the third quarter.