Washington, D.C. – Fannie Mae and Freddie Mac’s trial mortgage loan modifications under the Administration’s Home Affordable Modification Program (HAMP) were up more than 40 percent in September 2009 from the previous month. Completed loan modifications are also expected to increase when borrowers successfully complete the trial period and provide required documentation. The data were released by Edward J. DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA), as part of the agency’s monthly Foreclosure Prevention Report for July. The report summarizes mortgage delinquency and foreclosure prevention data for Fannie Mae and Freddie Mac.
Following is a summary of the foreclosure prevention data as of July 31, 2009, which includes HAMP trial modifications data through September:
Foreclosure Prevention Actions:
HAMP trial loan modifications in progress increased by 41 percent to 286,000 in September, from 202,200 in August.
Completed loan modifications declined for the fourth consecutive month to approximately 7,100 in July as servicers moved from traditional loan modifications to participate in HAMP.
Short sales increased by 24 percent in July to 5,500 as the pipeline of serious delinquent loans continued to increase.
Mortgage Performance:
Delinquencies continue to increase as approximately 74,200 more loans became 60 days or more delinquent in July. Loans 60-plus-days delinquent increased approximately 51 percent year-to-date to 1.4 million.
Foreclosures:
Foreclosure starts in July decreased 30 percent compared with June to nearly 85,300. HAMP requires servicers to explore alternative work-out solutions for borrowers that do not qualify for a loan modification. Loans are referred to foreclosure as a last resort.
Foreclosure and third-party sales increased slightly to 25,000 in July up from 24,700 in June.
Completed loan modifications are expected to increase later in the year when trial HAMP modifications complete the three-month trial period and provide all required documentation.
July 2009 Foreclosure Prevention Report
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030