As the Obama Administration prepared to launch its highly anticipated mortgage modification plan in April, the number of loans reworked by Fannie Mae and Freddie Mac fell while delinquencies and short sales rose, the agencies' regulator reported Wednesday.

The Federal Housing Finance Agency said completed loan modifications at the pair - which hold about 30 million residential mortgages - dropped 12% as the government began to focus its efforts on the Obama Administration effort.

The FHFA also said completed short sales and deeds in lieu leapt 15% to a level that is more than triple its volume a year earlier.

Still, delinquencies continued climbing with an additional 71,700, approximately 7%, becoming at least 60 days late in April.

Foreclosure starts, meanwhile, fell 3% from the previous month as servicers waited to determine which borrowers would be eligible for the administration's incentive-based anti-foreclosure plan.

-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629; meena.thiruvengadam@dowjones.com