Loan Modifications and Refinancings Continue to Increase
The overall volume of loan modifications increased 24% during the second quarter to nearly 171,200.
Loan modifications and refinancings by Fannie Mae and Freddie Mac rose during the second quarter as the volume of permanent modifications under the Administration’s Home Affordable Modification Program (HAMP) increased 65% while refinancings under the Home Affordable Refinance Program (HARP) increased 30%.
The data were released in FHFA’s Second Quarter 2010 Foreclosure Prevention & Refinance Report, which includes data on all of the enterprises’ foreclosure prevention efforts.
Findings of the quarterly report include:
- The overall volume of loan modifications increased 24% to nearly 171,200 during the quarter, with the majority of modifications completed through HAMP;
- More than half of completed loan modifications in the second quarter lowered borrowers’ monthly payments by more than 30%;
- Loans modified in the last two quarters are performing substantially better than loans modified in earlier periods. Less than 10% of loans modified in the last two quarters were more than 60 days delinquent three months after modifications;
- Short sales and deeds-in-lieu increased 27% during the quarter to nearly 30,900;
- Since the first full quarter in conservatorship (fourth quarter 2008), combined completed foreclosure prevention actions total 1,013,700; and
- Foreclosure starts increased 12% to nearly 275,100 while completed foreclosure sales and third-party sales increased 15% to nearly 112,400 in the second quarter.