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8/14/2019 Federal Housing Finance Agency

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FEDERAL H OUSING FINANCE AGENCY

NEWS RELEASE

For Immediate Release Contact: Corinne Russell (202) 414-6921

August 3, 2009 Stefanie Mullin (202) 414-6376

FHFA Reports Fannie Mae and Freddie MacForeclosure Prevention Efforts for May

Washington, DC Federal Housing Finance Agency Director James B. Lockhart today releasedFHFAs latest Foreclosure Prevention Report detailing actions taken by Fannie Mae and Freddie Mac

to prevent unnecessary foreclosures and keep people in their homes. The report includes loanmodification data under FHFAs Streamlined Modification Program, which was initiated inNovember 2008 but ended in April 2009. This report does not include data on refinancings ormodifications from the Administrations Making Home Affordable Program announced in March2009. The report shows that as of May 31, 2009, of the Enterprises 30 million residentialmortgages:

Completed loan modifications fell for second consecutive month in May to approximately10,400 as the Enterprises continue to focus on implementing the Home Affordable

Modification Program (HAMP). Modifications under the HAMP require a three-month trialperiod for the borrower to demonstrate the ability and willingness to make modifiedpayments. Modifications under HAMP are counted as completed after the three-month trialperiod is completed.

Loan modifications accounted for 47 percent of all completed foreclosure prevention actions inMay. The majority of loans modified in May involved both rate reductions and termextensions.

Completed short sales increased 3 percent in May 2009 to nearly 3,700, more than three timesthe volume one year earlier.

Delinquencies continued to increase as approximately 80,100 more loans became 60 days ormore delinquent in May. Loans 60-plus-days delinquent increased approximately 7 percentin May to 1 3 million


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Foreclosure and third-party sales increased to 19,300 in May up from 14,200 in April driven bysales of non-occupied properties, and owner-occupied properties already determined to beineligible for HAMP.

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. Thesegovernment-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortga ge ma rkets and

financial institutions.


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60 Days+ Delinquency RatesCredit quality continues to deteriorate...

Total

Prime

Nonprime

0%

2%

4%

6%

8%

10%

12%

39487

3951

6

39547

39577

3960

8

3963

8

3966

9

3970

0

3972

2

3975

3

3978

3

3982

2

3985

3

Fannie Mae

Freddie Mac

Fannie Mae

Freddie Mac

Foreclosure & Third-party Sales Completed

Foreclosure sales increased in May from sales of non-

owner occupied properties and properties determined to

be ineligible for HAMP.

14 13

17 16 1617

15

4 3

29

9

14

19

0

5

10

15

20

25

30

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

May

-09

#

ofloans

(thousands

)

* Consists of forbearance plans, charge-offs in lieu, short sales and deeds-in-lieu

Reduce Rate and Extend Term

The proportion of loan modifications with both rate

reductions and term extensions fell in May.

67%70%

73% 75%

62%

0%

20%

40%

60%

80%

Jan-09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Federal Housing Finance Agency Foreclosure Prevention Report

May 2009

60-plus-days Delinquency Rates

Delinquency rates continue to rise.

3.9%Total 4.1%

1.6%2.7% 2.9%

Prime1.0%

4.9%

Nonprime10.3%

11.1%

0%

2%

4%

6%

8%

10%

12%

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Foreclosure Prevention Actions Completed

Completed loan modifications and repayment plans fellin May as servicers continue to focus on HAMP.

0

5

10

15

20

25

30

35

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

May

-09

#

ofloa

ns

(thousands)

Other *

HomeSaver Advance

Repayment Plans

Loan Modifications

Page 2


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May 2009

Loan Modifications CompletedCompleted loan modifications fell for second

consecutive month in May as servicers continue to

focus on HAMP.

10,442

13,787

4,677

0

2,000

4,000

6,000

8,00010,000

12,000

14,000

16,000

18,000

May

-08

Jun

-08

Jul-

08

Aug

-08

Sep

-08

Oct-

08

Nov

-08

Dec

-08

Jan

-09

Feb

-09

Mar

-09

Apr

-09

May

-09

Repayment Plans CompletedCompleted repayment plans fell for third consecutive

month in May as some borrowers were evaluated for

HAMP eligibility.

3,944

4,457

5,504

0

1000

2000

3000

4000

5000

6000

7000

May

-08

Jun

-08

Jul-0

8

Aug

-08

Sep

-08

O

ct-08

Nov

-08

Dec

-08

Jan

-09

Feb

-09

Mar

-09

Apr

-09

May

-09

HomeSaver Advance (Fannie)

fell in April as Fannie Mae continues to deemphasizing

the program.

2,881

5,667

0

2000

4000

6000

8000

10000

12000

14000

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

Foreclosure Starts

fell in April due to temporarily suspension of foreclosure

actions while borrower's HAMP eligibility is being

determined.

37,887

85,938

0

10,000

20,000

30,000

40,000

50,000

60,000

70,00080,000

90,000

100,000

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

HomeSaver Advance Completed (Fannie)

Completed HSA funding declined in May as Fannie Mae

continues to deemphasize the program.

5,667

3,1822,881

0

2000

4000

6000

8000

10000

12000

14000

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Foreclosure Starts

Foreclosure starts increased in May from non-owner

occupied properties and properties determined to be

ineligible for HAMP.

37,887

85,93890,581

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

May

-08

Jun-08

Jul-0

8

Aug-08

Sep-08

Oct-0

8

Nov-08

Dec-08

Jan-09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Page 3


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May 2009

Please see glossary on page 8 Page 4


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* Total number of modified loans reported in this table may not tie to the number of modified loans shown in section 2 of the appendix due to timing differences in reporting systems.


May 2009

Please see glossary on page 8 Page 6


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