- Dennis Norman
Today the Federal Housing Finance Agency released it’s “Foreclosure Prevention & Refinance Report for the Third Quarter 2009“. This report gives data on Fannie Mae and Freddie Mac, the two-quasi-government agencies that either own or insure most of the home loans in the U.S., including how foreclosure prevention and loan modification programs under the Making Home Affordable Plan are performing.
Prior reports and data have shown that these programs have not helped near as many people as planned nor have they been as effective as was intended and meanwhile mortgage delinquencies continue to increase. There has also been testimony before Congress by leading economists saying these programs are “destined to fail“. Unfortunately the data in this report does not indicate too much has changed.
Here are highlights from the report:
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As of November 30, 2009 there have been 405,700 HAMP trial and permanent loan modifications implemented. This is falling short of the government’s goal of having 500,000 loan modifications implemented by November and does not appear to be on track to help the 3 – 4,000,000 borrowers the program was supposed to help.
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Unfortunately only 22,000 of the HAMP loan modifications noted above have been permanent modifications, the rest are still in their 3-month trial period.
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During the third quarter there were 278,100 HAMP Trial modifications entered into, up from 66,200 in the prior quarter, a 320 percent increase.
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There is good news regarding new foreclosures, they declined in the third quarter by 15 percent.
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Short sales and deeds in lieu of foreclosure increased by 39 percent during the third quarter from 12,300 to 17,400. This is also good news and the success of foreclosure alternatives, such as these, is no doubt the reason for the decline in new foreclosures.
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During the third quarter of 2009 there were 105,500 foreclosure prevention workouts completed compared to 86,800 the prior quarter, a 22 percent increase.
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Loans that are only one month delinquent increased by 52,000 loans or nearly 8 percent during the third quarter to 734,000.
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Loans that are 60 days or more delinquent increased by 260,300 or nearly 20 percent during third quarter to a total of 1.6 million delinquencies.
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Loans that are seriously delinquent (90 days or more) increased 20 percent to 4.2 percent.
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The total number of loans that are delinquent increased 15 percent in third quarter to 7.6 percent of all loans.
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Interesting blog, not like the many others some good info!