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Federal Housing Finance Agency Director James B. Lockhart today released FHFA’s latest Foreclosure Prevention Report detailing actions taken by Fannie Mae and Freddie Mac to prevent unnecessary foreclosures and keep people in their homes. The report includes loan modification data under FHFA’s Streamlined Modification Program, which was initiated in November 2008 but ended in April 2009. Completed loan modifications fell 12 percent in April to approximately 13,800 from March as the Enterprises ended their Streamlined Modification Program (SMP) and began implementing the Home Affordable Modification Program (HAMP). Seventy-five percent of loans modified in April involved both rate reductions and term extensions. Completed short sales and deeds in lieu increased 15 percent in April 2009 to nearly 4,000. Delinquencies continued to increase as approximately 71,700 more loans became 60 days or more delinquent in April. Foreclosure starts in April declined 3 percent compared with March to nearly 85,900. Foreclosure starts were lower in April as servicers began to temporarily suspend foreclosure actions on delinquent borrowers who pursued a modification under HAMP, while borrowers’ eligibility was being determined. If a borrower is determined to be ineligible for HAMP, the servicer is required to consider other alternatives to prevent foreclosure such as short sales and deeds in lieu. Foreclosure and third-party sales increased to 14,200 in April up from 9,300 in March driven by sales of non-occupied properties, and owner-occupied properties already determined to be ineligible for HAMP.
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