Loan Modifications by Fannie Mae Fall in June

Fannie Mae reported that the number of loan modifications completed during the month of June was less than May’s figure. During the month of June, the agency modified 12,967 loans, down from 13,650 the previous month. That is lower than this year’s monthly average and last year’s monthly average: so far this year, Fannie Mae completed 83,511 loan mods (averaging 13,919 a month) and in 2012, a total of 163,412 loans were modified (averaging 13,618 a month).

The decline in loan mods could be attributed to improvements in the housing market and the economy, with home prices increasing and the unemployment rate falling. Fannie Mae reported a decrease in the delinquency rate for single-family homes in June was at 2.77%, down from 2.83% in May. The delinquency rates for multi-family residences declined for the fourth straight month at 0.28%, compared to 0.30% in May.

In June, Fannie Mae’s Gross Mortgage Portfolio fell at a compounded annualized rate of 18.4% to $565.2 billion, compared to $574.9 billion in May. Its Book of Business also declined at a compounded annualized rate of 1.9% to $3.178 trillion. Last year, the Gross Mortgage Portfolio stood at $672.8 billion and its Book of Business stood at $3.183 trillion.

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