Washington, D.C. – Fannie Mae’s and Freddie Mac’s trial and permanent loan modifications under the Administration’s Home Affordable Modification Program (HAMP) increased by nearly 75 percent during the fourth quarter of 2009. Trial and permanent modifications increased to more than 485,000 at the end of the fourth quarter of 2009, up from 278,000 in the third quarter. The data were released by Edward J. DeMarco, Acting Director of the Federal Housing Finance Agency, as part of the agency’s Foreclosure Prevention and Refinance Report which is also submitted to Congress as the Federal Property Manager’s Report in accordance with Section 110 of the Emergency Economic Stabilization Act of 2008 (EESA).
The report, which details the actions Fannie Mae and Freddie Mac have taken to prevent foreclosures and keep people in their homes, also shows a 63 percent increase in refinancings through the Home Affordable Refinance Program (HARP) in the fourth quarter. In addition, the report shows that for loan modifications in the fourth quarter of 2009, the proportion of borrowers receiving payment reductions greater than 20 percent was the highest in two years.
Highlights of the report include the following:
HAMP trial and permanent modifications increased 75 percent during the fourth quarter to more than 485,400. The volume increased further to approximately 572,700 through February 2010, of which nearly 103,700 were permanent modifications.
HARP refinance volume increased 63 percent during the fourth quarter to approximately 190,200. The number increased to nearly 257,100 through February 2010.
Completed foreclosure prevention activity increased 38 percent in the fourth quarter to approximately 145,400, driven by increases in all forms of home retention activities and short sales.
Completed loan modifications increased 57 percent to nearly 57,600 in the fourth quarter. The majority of borrowers received a combination of rate reductions and term extensions.
Approximately 60 percent of loan modifications completed in the fourth quarter lowered borrowers’ monthly payments by over 20 percent.
Fourth Quarter 2009 Foreclosure Prevention & Refinance Report
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030