In October, Fannie Mae and Freddie Mac reached a milestone as far as loan modifications completed since the start of the conservatorship in 2008, according to the Federal Housing Finance Agency (FHFA)’s Foreclosure Prevention Report for October 2016.
With 9,213 permanent loan modifications completed in October, the number of loan mods the GSEs have completed since the conservatorship began in September 2008 passed the 2 million mark, at 2,002,095, according to the FHFA.
Both Fannie Mae and Freddie Mac say they have made foreclosure prevention, specifically keeping families in their homes, a priority since the foreclosure crisis peaked six to seven years ago.
In all, the number of foreclosure prevention actions completed by the GSEs since the conservatorship began totaled 3,802,258 through the end of October 2016. Approximately 3.139 million of those have been home retention actions, with nearly two-thirds of those coming in the form of permanent loan modifications. Other types of home retention actions included repayment plans, forbearance plans, and charge-offs-in-lieu of foreclosure.
The number of home retention actions (3.14 million) has outpaced the number of non-foreclosure home forfeiture actions by nearly 5 to 1 since the conservatorship began. Home forfeiture actions, which include deeds-in-lieu of foreclosure and short sales, have totaled 662,000 during that period with the majority of them coming in the form of deeds-in-lieu of foreclosure (576,000).
According to FHFA, “The share of modifications with principal forbearance increased to 21 percent. Modifications with extend-term only remained high at 41 percent of all permanent modifications due to improved house prices and a declining HAMP eligible population.”
Click here to view the FHFA’s full Foreclosure Prevention Report for October 2016.