Fannie and Freddie Servicers Refinance 53% More Loans in Q110: FHFA
Mortgage servicers refinanced 53% more Fannie Mae Mae and Freddie Mac loans under the Home Affordable Refinance Program (HARP) in Q110 than in the previous quarter, according to the Federal Housing Finance Agency (FHFA). Delinquencies are improving as well in the Fannie and Freddie portfolios. According to the FHFA, the amount of loans behind by 60 or more days declined for the first time in two years, dropping by more than 23,000 to roughly 1.7m in Q110. The servicers refinanced 291,600 Fannie and Freddie loans at the end of Q110, up from 190,180 at the end of Q409. Since April 1, 2009, servicers refinanced more than 3.9m Fannie and Freddie loans. Monthly, refinancing dropped slightly in March 2010 as the 30-year mortgage rates fluctuated narrowly over the past few months, hovering around 5%. Servicers prevented 75% more foreclosures in Q110, using modifications, short sales and deeds-in-lieu with refinancing. Servicers tripled the amount of permanent modifications of Fannie and Freddie loans under the Home Affordable Modification Program (HAMP) to 136,000 at the end of Q110, up from 43,000 at the end of Q409. More than 448,000 borrowers entered a HAMP three-month trial modification at the end of March. About two-thirds of the modifications conducted in Q409 reduced monthly payments for borrowers by more than 20%, according to the FHFA. Write to Jon Prior.