Federal Housing Finance Agency report - 10:35AM

Full report here FHFA Reports Fannie Mae and Freddie Mac Foreclosure Prevention Efforts for April Washington, DC – Federal Housing Finance Agency Director James B. Lockhart today released FHFA’s 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 loan modification data under FHFA’s Streamlined Modification Program, which was initiated in November 2008 but ended in April 2009. This report does not include data on refinancings or modifications from the Administration’s Making Home Affordable Program announced in March 2009. The report shows that as of April 30, 2009, of the Enterprises’ 30 million residential mortgages: • Completed loan modifications fell 12 percent in April to approximately 13,800 from March as the Enterprises ended their Streamlined Modification Program (SMP) and began implementing the Home Affordable Modification Program (HAMP). Modifications under the HAMP require a three-month trial period for the borrower to demonstrate the ability and willingness to make modified payments. Modifications under HAMP are counted as completed after the three-month trial period is completed. • Loan modifications accounted for 48 percent of all completed foreclosure prevention actions in April compared to 47 percent in March. Seventy-five percent of loans modified in April involved both rate reductions and term extensions, up from 73 percent in March. • Completed short sales and deeds in lieu increased 15 percent in April 2009 to nearly 4,000, more than three times the volume one year earlier. • Delinquencies continued to increase as approximately 71,700 more loans became 60 days or more delinquent in April. Loans 60-plus-days delinquent increased approximately 7 percent in April to 1.2 million. • Foreclosure starts in April declined 3 percent compared with March to nearly 85,900. Foreclosure starts were lower in April as servicers began to temporarily suspend foreclosure actions on delinquent borrowers who pursued a modification under HAMP, while borrowers’ eligibility was being determined. If a borrower is determined to be ineligible for HAMP, the servicer is required to consider other alternatives to prevent foreclosure such as short sales and deeds in lieu. • Foreclosure and third-party sales increased to 14,200 in April up from 9,300 in March driven by sales of non-occupied properties, and owner-occupied properties already determined to be ineligible for HAMP.

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Green shoots huh? I think not. Jobs, jobs, jobs. Until we get those, don't buy anything the talking heads tell you about a recovery.