WASHINGTON (8/4/09)--The Federal Housing Finance Agency (FHFA), regulatory overseer of Freddie Mac and Fannie Mae and the 12 Federal Home Loan Banks, released its May monthly foreclosure report Monday, revealing its most recent information available on mortgage delinquencies and foreclosures. The monthly information does not include data on refinancings or modifications from the Obama administration’s Making Home Affordable Program (HAMP). The FHFA reports that as of May 31, of the government-sponsored enterprises’ 30 million residential mortgages:
* There was a decline in completed loan modifications for the second consecutive month, to approximately 10,400. The FHFA said the drop occurred as Freddie and Fannie “continue to focus on implementing the Home Affordable Modification Program (HAMP),” which requires a three-month trial period for the borrower to demonstrate the ability and willingness to make modified payments; * Loan modifications accounted for 47% of all completed foreclosure prevention actions in May. The majority of loans modified in May involved both rate reductions and term extensions; * There was a 3% increase in completed short sales to nearly 3,700. The FHFA said that represents more than three times the volume of one year earlier; and * Delinquencies continued to increase as approximately 80,100 more loans became 60 days or more delinquent in May. Those loans increased approximately 7% to 1.3 million.
The FHFA said that loss of income continues to be the top reason for delinquency, cited by 40% of borrowers in May, up from 34% in January. The agency also reported that foreclosure starts jumped 5% compared with April, to nearly 90,600, from processing of non-owner occupied properties and properties determined to be ineligible for HAMP. Use the resource link below to access the FHFA report.