Performance of Modified Loans Improves
FHFA releases third-quarter foreclosure prevention report.
During the third quarter of 201, refinancings through the Home Affordable Refinance Program increased 26% and Fannie Mae and Freddie Mac loan modifications through the Home Affordable Modification Program (HAMP) increased 16%, although the overall volume of loan modifications and the pace of HAMP modifications declined from previous periods.
That’s the word from the Federal Housing Finance Agency’s (FHFA) Third Quarter 2010 Foreclosure Prevention & Refinance Report, which includes data on all of the enterprises’ foreclosure prevention efforts.
Findings of the report include:
- Loans modified during the last three quarters are performing substantially better three months after modification, compared to loans modified in earlier periods;
- More than half of the loan modifications completed in the third quarter lowered borrowers’ monthly payments by over 30%;
- Loans that are 30 days delinquent increased by 17,600 (2.7%) during the third quarter to approximately 682,000;
- Loans more than 60 days delinquent declined for the third consecutive quarter: These loans fell by 109,700 (6.8%) during the third quarter to approximately 1.5 million; and
- Nearly 35,400 HAMP trial modifications transitioned to permanent during the third quarter, bringing the total number of active HAMP permanent modifications to nearly 260,000.