Foreclosure Prevention Report - Second Quarter 2013

Published: 10/07/2013

SECOND QUARTER 2013 HIGHLIGHTS

There were nearly 117,100 completed foreclosure prevention actions in the second quarter of 2013, bringing the total to more than 2.9 million since the start of conservatorship in September 2008. Approximately 2.4 million of these actions have helped troubled homeowners save their homes including more than 1.4 million permanent loan modifications.
More than half of troubled homeowners who received permanent loan modifications in the second quarter had their monthly payments reduced by more than 30 percent.
One-third of permanent loan modifications in the second quarter included principal forbearance.
As of June 30, 2013, about 11 percent of loans modified in the third quarter of 2012 had missed two or more payments.
Approximately 29,400 short sales and deeds-in-lieu were completed during the second quarter, bringing the total to more than 505,700 since the start of conservatorship.

The number of the Enterprises’ 60-plus-days delinquent borrowers declined 7 percent during the quarter to the lowest level since the start of conservatorship in September 2008.
The Enterprises’ serious delinquency rate fell to 2.8 percent at the end of the quarter compared with 7.6 percent for Federal Housing Administration (FHA) loans, 3.9 percent for Veterans Affairs (VA) loans and 5.9 percent for all loans (Industry average).

Completed third-party sales and foreclosure sales fell 10 percent while foreclosure starts dropped 11 percent during the quarter.
REO inventory continued to decline as property dispositions outpaced property acquisitions in the second quarter.