FHFA: Fannie, Freddie Loan Modifications Jumped In 1Q
June 23 2009 - 2:18PM
Dow Jones News
Fannie Mae (FNM) and Freddie Mac (FRE) more than doubled their
loan modifications in the first quarter of 2009 from the same
period a year earlier, their regulator said Tuesday.
The 37,000 loans modified by the government-controlled mortgage
giants during the first quarter also represented a 57% increase
from the fourth quarter of 2008, according to a report from the
Federal Housing Finance Agency.
The first quarter total does not reflect loan modifications
completed under a new government program to help strapped
borrowers, the agency said.
The report reflects actions taken by Fannie and Freddie on the
30 million residential mortgages they own or guarantee. That number
represents 56% of all U.S. mortgages outstanding, but just 22% of
all seriously delinquent loans. Federal Housing Finance Agency
Director James B. Lockhart said Fannie and Freddie had made big
strides on modifications. "As a result, more homeowners are seeing
payments significantly reduced and fewer people will lose their
homes."
-Jessica Holzer, Dow Jones Newswires; 202-862-9228;
jessica.holzer@dowjones.com