FHFA: 2.3 million homeowners saved from chilling effects of foreclosure
In the first quarter of 2013, 130,000 loans tied to Fannie Mae and Freddie Mac survived after the deployment of some type of home retention strategy, the Federal Housing Finance Agency reported Monday.
When tallying up the quarterly numbers from Sept. 2008 through the most recent first quarter, the data shows more than 2.3 million troubled homeowners with GSE-linked loans have managed to save their homes through some type of prevention initiative and approximately 1.4 million ended up with permanent loan modifications.
About half of those who obtained permanent loan mods in 1Q of 2013 saw their monthly payments reduced by 30%.
Meanwhile, over a third of the permanent loan modifications in the first quarter included principal forbearances.
Serious delinquencies continued to improve with the number of enterprise loans classified as 60-plus days past due falling 11% in the first quarter, its lowest level since the first quarter of 2009.
When doing a compare and contrast from a year earlier, approximately 12% of loans modified in the second quarter of 2012 had missed two or more payments, the FHFA noted.
But overall, serious delinquency rates reported by the enterprises fell to 3% in the most recent report, compared to 8% for the Federal Housing Administration, 4.2% for Veterans Affairs and 6.4% for all loans.