WASHINGTON (1/11/10)--The Federal Housing Finance Agency (FHFA) on Friday reported that Fannie Mae and Freddie Mac refinanced four million loans and performed more than 405,000 trial and permanent loan modifications under the administration’s Home Affordable Modification Program (HAMP) as of November. The FHFA’s Foreclosure Prevention & Refinance Report also reported a 15% drop in foreclosure starts on enterprise loans, with a 14% increase in loan modifications related to enterprise loans, excluding HAMP trial loan modifications. Fannie and Freddie “completed 105,500 foreclosure prevention workouts” during the third quarter of 2009, a 22% increase over the amount completed during the previous quarter, and entered into 278,100 trial modifications under HAMP, a 320% increase over the total recorded during the second quarter of 2009. HAMP trial modifications, which “have become the primary modification type” used by Fannie and Freddie, “provide immediate payment relief to borrowers,” the release said. Additionally, “nearly half of loan modifications completed in the third quarter, excluding HAMP trial modifications, resulted in borrowers’ payments decreasing by over 20%,” according to the report. The FHFA reported a 39% increase in short sales and deeds in lieu during the recently completed quarter, with loans that were more than 60 days behind in their payments also increasing by nearly 20%. For the full FHFA report, use the resource link.