Washington, DC – Fannie Mae and Freddie Mac modified nearly 37,000 loans during the first quarter of 2009. It is an increase of 57 percent over the fourth quarter of 2008 and more than double the number of modifications in the first quarter of last year. The data were released by James B. Lockhart, Director of the Federal Housing Finance Agency , as part of the Foreclosure Prevention Report  for the first quarter of 2009.
The FHFA report details the actions Fannie Mae and Freddie Mac have taken to prevent foreclosures and keep people in their homes. The report reflects loan modification volumes under the Streamlined Modification Program initiated in November 2008 but does not include volumes from the Home Affordable Modification program (HAMP) announced in March 2009 which was still in development in March.
“The use of serious loan modifications by Fannie Mae and Freddie Mac has risen dramatically,” said Director Lockhart. “As a result, more homeowners are seeing payments significantly reduced and fewer people will lose their homes.”
The report shows that as of March 31, 2009, of the Enterprises’ 30 million residential mortgages:
Although the Enterprises’ mortgage delinquencies continued to increase during the first quarter of 2009, the rate of delinquency is consistently lower than the industry average. As of March 31, 2009, the percentage of Enterprises’ mortgage loans that were at least two payments past due (60 plus days delinquent) was 3.6 percent, compared with 6.1 percent for VA loans, 10.2 percent for FHA loans and 9.2 percent for the industry average.
“We encourage servicers to work aggressively to continue to identify borrowers who are willing and able to make affordable mortgage payments,” said Lockhart. “These efforts at modifying mortgages and refinancing homeowners into safer mortgages are
important elements of the stabilization of the housing market and the U.S. economy. ”
FHFA Reports Homeowner Foreclosure Assistance Activity
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