GSE Sees Foreclosures Drop 11% in Q2 2013

Reports have shown that Foreclosures and delinquencies have continued to drop within government-sponsored enterprises such as Fannie Mae and Freddie Mac after second-quarter reviews from the Federal Housing and Finance Agency’s (FHFA) Foreclosure Prevention Report.

Interestingly, third-party sales and foreclosures fell 10% from last quarter and foreclosure starts decreased by 11%. This is the result of many national foreclosure-prevention initiatives.

Since their conservatorship in 2008, Fannie Mae and Freddie Mac have completed 2.9 million foreclosure-prevention actions, which have resulted in 2.4 million borrowers staying in their homes and 1.4 million homeowners receiving permanent loan modifications.

Reaching its lowest level since the fall of 2008, the number of loans more than 60 days past due in Q2 2013 has decreased 7% while seriously delinquent loans — those over 90 days past due — fell to 2.8%. In comparison, Federal Housing Administration loans and Veteran Affairs loans only fell to 7.6% and 3.9%, respectively. The national average was 5.9% for all loans.

More than half of distressed homeowners had their monthly payments reduced by more than 30% after receiving loan modifications. A total of 29,400 short sales and deeds-in-lieu were completed, rather than foreclosures in the second quarter as well, which resulted in over 505,700 since the start of conservatorship five years ago.


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