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FHFA Reports Delinquency Decline for Some Loans Backed by Fannie Mae and Freddie Mac

The Federal Housing Finance Agency (FHFA) reported in its third quarter 2012 Foreclosure Prevention Report that the number of loans backed by Fannie Mae and Freddie Mac in serious delinquency (loans delinquent for 90 or more days) has dropped below 1 million for the first time since the summer of 2009.  Loans delinquent by 60-plus days also declined; however, there was an increase in loans delinquent for 30 to 59 days. 

The report also details other quarterly loan trends at Fannie and Freddie, which include an overall increase in foreclosure prevention and refinance activities.  Included in these activities were increases in loan modifications and short sales.  Repayment plans, forbearance plans, charge-offs-in-lieu and deeds in-lieu decreased in the third quarter. 

The report specifically highlighted the following:

  • Fannie and Freddie completed approximately 134,200 foreclosure prevention actions in the third quarter, bringing the total to more than 2.5 million since the start of conservatorship in September 2008. Over 2.1 million of these actions have helped borrowers to stay in their homes including nearly 1.3 million permanent loan modifications.
  • Approximately 45 percent of troubled borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 30 percent.
  • More than one-third of loan modifications completed in the third quarter included principal forbearance.
  • Fewer than 15 percent of loans modified in the fourth quarter of 2011 had missed two or more payments, nine months after modification.
  • Nearly 38,000 short sales and deeds-in-lieu were completed in the third quarter, up 4 percent compared with the second quarter.

The full report which provides detailed state-by-state information along with specific information on various federal programs to help homeowners can be found here.