Fannie,Freddie Loan Modifications Doubled After Government Takeover
February 06 2009 - 12:51PM
Dow Jones News
Fannie Mae (FNM) and Freddie Mac (FRE) doubled their loan
modifications in the first two full months after being seized by
the government, their regulator said Friday.
The mortgage giants' loan modifications for October and November
of 2008 were up 50% from the previous two months, reflecting
foreclosure freezes at both companies that gave them more time to
revamp the terms of troubled loans, said Federal Housing Finance
Agency Director James B. Lockhart.
"These data reflect the increased commitment of the servicers
and the GSEs to help borrowers in trouble modify their loans to
keep them in their homes," he said in a statement.
The data were contained in a November report detailing all loss
mitigation efforts by Fannie and Freddie on the 30.6 million
residential mortgages they own or guarantee.
The share of mortgages 60 or more days past due that result in
foreclosure starts has been steadily dropping, according to the
report. The proportion fell to 5.25% in November from 6.44% in
October. During the first quarter of 2008, the share of such past
due loans that resulted in foreclosure starts was 8.29%.
-By Jessica Holzer, Dow Jones Newswires; 202-862-9228;
jessica.holzer@dowjones.com