Q2 Foreclosure Prevention Activity Increases

Fannie Mae and Freddie Mac completed 63,593 foreclosure prevention actions in the second quarter of this year, according to new data from the Federal Housing Finance Agency (FHFA). This brings the total number of foreclosure prevention actions to more than 3.5 million since the start of their federal conservatorship period in September 2008. The FHFA added that these measures helped more than 2.9 million borrowers stay in their homes, including more than 1.8 million who received permanent loan modifications.

The serious delinquency rate of Fannie Mae and Freddie Mac loans fell to 1.6 percent at the end of the second quarter and the real estate-owned (REO) inventory at Fannie Mae and Freddie Mac declined 14 percent during the second quarter to 86,515, which is the first time since 2009 that their REO inventories were below the 100,000 mark.

Also, the FHFA reported that the number of 60-plus day delinquent loans declined another six percent during the second quarter while approximately 31 percent of all permanent loan modifications in the quarter helped to reduce homeowners' monthly payments by over 30 percent.