Foreclosure Prevention Report - Q4 2013

Published: 04/02/2014

Fourth Quarter 2013 Highlights

Approximately 99,700 foreclosure prevention actions were completed during the fourth quarter, bringing the total to more than 3.1 million since the start of conservatorship in September 2008. About 2.6 million of these actions have helped troubled homeowners stay in their homes including nearly 1.6 million permanent loan modifications.
Nearly half of all permanent loan modifications in the fourth quarter helped to reduce homeowners' monthly payments by over 30 percent.
Approximately 31 percent of borrowers who received permanent loan modifications in the fourth quarter had portions of their mortgage balance forborne.
As of December 31, 2013, about 13 percent of loans modified in the fourth quarter of 2012 had missed two or more payments, one year after modification.
There were nearly 20,200 completed short s ales and deeds-in lieu during quarter, bringing the total to more than 551,900 since the start of conservatorship.

The number of the Enterprises' seriously delinquent borrowers decreased 7 percent during the fourth quarter.
The Enterprises' serious delinquency rate fell to 2.4 percent at the end of the quarter compared with 7.3 percent for Federal Housing Administration (FHA) loans, 3.8 percent for Veterans Affairs (VA) loans and 5.4 percent for all loans (Industry average).

Completed third-party sales and foreclosure sales dropped 15 percent while foreclosure starts decreased 3 percent in the fourth quarter.
REO inventory increased slightly in the fourth quarter as property acquisitions outpaced dispositions for the second consecutive quarter.