The Federal Housing Finance Agency said
on Friday that Freddie Mac and Fannie Mae continue to complete thousands of
foreclosure prevention actions in each reporting period. The two assisted homeowners with a combined
total of 88,800 loan modifications, forbearances, and other assistance. This brings
the total to 3.2 million since the two government sponsored enterprises (GSEs)
were put in conservatorship in 2008. That
total includes 1.6 million loan modifications.
Foreclosure previous actions have helped
more than 2.6 million borrowers stay in their homes and another half-million
have been helped to exit home ownership without a foreclosure. Those home forfeiture actions include short
sales and deeds-in-lieu. FHFA noted that
short sales dropped by 26 percent in the first quarter compared to the previous
Fannie Mae and Freddie Mac's foreclosure prevention arsenals include the Home
Affordable Modification Program (HAMP), a joint effort by FHFA and the Treasury
Department, and proprietary programs offered by each of the GSEs. In the first quarter of 2014 there were
10,764 borrowers in active HAMP trials compared to 13,551 in the fourth quarter
of 2013. The number of active permanent
modifications increased from 431,503 in the fourth quarter to 431,677 in the
Since HAMP was initiated in April 2009,
there have been 1.1 million trial modifications extended to troubled homeowners
and approximately 620,400 of them have been granted permanent HAMP modifications. At the end of the first quarter there were
nearly 10,800 homeowners in a HAMP trial.
Non-HAMP modifications however accounted
for most of permanent loan modifications in the first quarter, nearly
44,800. Since the housing crisis began,
modifications through the GSEs proprietary programs have totaled more than
The number of seriously delinquent borrowers with GSE loans decreased 8
percent during the quarter and the serious delinquency rate fell to 2.2 percent
compared to 6.7 percent for FHA loans, 3.6 percent for VA loans, and a 5.0
percent industry average.
While the total number of troubled borrowers continued to decline, 31
percent of these borrowers remained deeply delinquent at the end of the first
quarter. Florida, New York and New Jersey have the highest number of
deeply delinquent loans (365+ days).
Third-party sales and foreclosure sales fell slightly to 47,300 while
foreclosure starts decreased 25 percent in the first quarter.
The GSE's inventory of real estate owned (REO) declined by 3 percent in the
first quarter as property dispositions outpaced acquisitions 9 percent to 6
percent. REO located in Florida, which
comprises a significant portion of the GSEs' inventory, increased by 9 percent
during the quarter.