Are Fannie and Freddie finally getting serious about loan modifications?
by Tom on June 23, 2009
in Market Musings, banks, house prices
A couple of interesting points about this article:
- The number of loan modifications in the first quarter of 2009 is 57% higher than it was in the 4th quarter of 2008.
- 52% of all loan modifications resulted in a payment drop of more than 20%.
- Foreclosure starts in the first quarter jumped by more than 30% for non-prime and by more than 74% for prime loans.
So, on the one hand, they are doing loan modifications more aggressively and on the other hand, foreclosures are going up. Oh, and they initiated foreclosures on 6.5 times as many homeowners as they did loan modifications.
Interesting…..
Tom Vanderwell
Modifications up 57% at GSEs : HousingWire || financial news for the mortgage market
Government-sponsored enterprises Fannie Mae (FNM: 0.64 +3.23%) and Freddie Mac (FRE: 0.71 +9.23%) reported more than 37,000 mortgage modifications in the first quarter of 2009, 57% more than the volume of modifications seen in the previous quarter.The modification data, supplied by the enterprises’ conservator, the Federal Housing Finance Agency (FHFA), include modifications conducted through the streamlined modification program, but not the Making Home Affordable Program, as it was still in development at the end of Q109.
“The use of serious loan modifications by Fannie Mae and Freddie Mac has risen dramatically,” says FHFA director James Lockhart in a statement today. “As a result, more homeowners are seeing payments significantly reduced and fewer people will lose their homes.”
