Washington, D.C. – Federal Housing Finance Agency (FHFA) Director James B. Lockhart today released FHFA’s latest Foreclosure Prevention Report detailing actions taken to prevent unnecessary foreclosures. The report, based on data from the Enterprises’ 30.2 million residential mortgages as of February 28, shows significant foreclosure prevention activity.
Foreclosure Prevention Actions:
Completed foreclosure prevention actions increased by 9 percent in February with completed loan modifications growing by 26 percent. Repayment plans grew 38 percent.
As the Enterprises intensified their loan modification efforts, loan modifications accounted for 43 percent of all completed foreclosure prevention actions in February, up from 38 percent in January. Approximately 70 percent of loan modifications completed in February involved both interest rate reductions and term extensions.
Completed alternatives to foreclosure—short sales and deeds in lieu—accounted for approximately 9 percent of all completed foreclosure prevention actions.
Mortgage Performance:
Credit quality continued to decline as approximately 41,000 more loans became 60 days or more delinquent in February. Loans 60 days+ delinquent increased approximately 4 percent in February to 1.1 million.
One in 10 non-prime loans was 60 days+ delinquent at the end of February compared with two in 100 prime loans. Non-prime loans were 16 percent of the total 30.2 million loans.
Foreclosures:
The Enterprises temporarily suspended all foreclosure sales on owner-occupied properties during the periods November 26, 2008 through January 31, 2009 and the last two weeks of February 2009. The suspension led to a substantial reduction in completed foreclosure sales in December 2008 and January 2009. However, completed foreclosure sales surged to 28,897 in February (from 3,222 in January) when the moratorium on foreclosures was lifted during the first half of February, 2009. The moratorium ended on March 6, 2009.
February 2009 Foreclosure Prevention Report
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030