FHFA Releases GSE Home Retention Metrics

The two government sponsored enterprises
(GSEs) Freddie Mac and Fannie Mae completed nearly twice as many foreclosure
prevention actions
in the first quarter outside of the Home Affordable
Modification Program as they did through it. 
According to the Federal Housing Finance Agency’s (FHFA) Foreclosure Prevention Report for the
quarter, there were 111,739 home retention actions taken by the two
companies including 60,348 loan modifications, 44,636 repayment plans, 6,245
forbearance plans and 507 charge-offs-in-lieu. 
The modification figure includes just over 31,000 transacted through
HAMP. 

Approximately half of the loan
modifications resulted in a reduction in the borrower’s monthly payment of 30
percent or more.  FHFA has repeatedly stressed
that the larger the payment reduction the greater the chance the modification
will succeed.  Nearly all of GSE
modifications resulted in some combination of rate reduction, forbearance,
and/or term extension.  Servicers are not
allowed to do principal reductions as part of modifications of GSE loans
however FHFA said that nearly one-third of the loan modifications included
principal forbearance.

Home retention actions decreased in the
first quarter of 2012 as compared to the fourth quarter of 2011 from 120,698 to
111,739 and modifications (including those done through HAMP) were down by
almost 11,000. 

Total home forfeiture actions totaled
34,360 during the first quarter, down from 34,895 in the previous quarter.  Of this number 30,601 were short sales (down
from 31,785) and the remaining 3,759 were deeds-in-lieu of foreclosure, an
increase from 3,110.

The performance of modified loans
remains strong, especially among those modified after the first few years of
the foreclosure prevention initiatives. 
Fewer than 15 percent of loans modified in the second quarter of 2011
had missed two or more payments nine months after modification.

Delinquency rates for the GSEs continue
their slow decline.  Loans that are 30-59
days delinquent represent 1.7 percent of the portfolio down from 2.1 percent in
the previous quarter.  The 60+ day rate
is 4.2 percent, down from 4.5 percent and serious delinquencies are at 3.6
percent compared to 3.8 percent.

Delinquencies continue a wild state by
state variation.  Florida has by far the
largest number of delinquencies – over 270,000 with California not even close
at about 150,000.  Florida is also notable
for being the only state with a delinquency rate over 8 percent and for the number
of delinquent loans – 160,000 – that have been delinquent for more than one
year. 

An
interactive version of the map below is now available.   The new Borrower Assistance Map allows
state level access to information on delinquencies, foreclosure prevention
activities, Real Estate Owned (REO) properties and refinances for GSE
loans.   

…(read more)

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