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Fannie Mae and Freddie Mac Foreclosure Prevention Actions Dip in First Quarter; HARP Refinancings Continue Increase

June 9th, 2011 7:29 AM by Lehel S.


Fannie Mae and Freddie Mac Foreclosure Prevention Actions Dip in First Quarter; HARP Refinancings Continue Increase
Washington, DC – Fannie Mae and Freddie Mac have completed more than 1.6 million
foreclosure prevention actions since the beginning of conservatorship in the fourth quarter of
2008, with more than half of these actions resulting in loan modifications.  According to the
FHFA’s First Quarter 2011 Foreclosure Prevention & Refinance Report, loan modifications
declined for the third consecutive quarter but resulted in deeper payment reductions for more
people.  
Additional findings of the Report include the following:
? Total completed foreclosure prevention actions declined in the first quarter to 171,531
from 208,416 in the previous quarter driven primarily by decreases in loan
modifications and repayment plans.
? The Enterprises’ completed loan modifications decreased to 86,201 from 119,778 during
the first quarter.
? The cumulative total of refinancings through the Home Affordable Refinance Program
(HARP) increased 21 percent during the quarter to approximately 752,000 loans.
? Loans modified in 2010 continued to perform substantially better compared to loans
modified in earlier periods for two primary reasons: 1) Loan modifications in 2010
resulted in deeper payment reductions for a greater proportion of borrowers than in
earlier periods and, 2) The majority of completed loan modifications in 2010 required
successful completion of a trial period prior to permanent modification.
? Foreclosure starts declined while completed third-party and foreclosure sales increased
in the first quarter.
Link to First Quarter 2011 Foreclosure Prevention & Refinance Repor
Posted in:General
Posted by Lehel S. on June 9th, 2011 7:29 AM

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