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FHFAs latest foreclosure report

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WASHINGTON (2/9/09)--The Federal Housing Finance Agency (FHFA), regulatory overseer of Freddie Mac and Fannie Mae and the 12 Federal Home Loan Banks, released its November monthly foreclosure report Friday, revealing its most recent information available on mortgage delinquencies and foreclosures. The report also makes public loss-mitigation efforts since the government-sponsored enterprises were placed in conservatorship under the FHFA. “Loan modifications for October and November, which were the first two full months of the conservatorship, increased by 50% from the previous two months,” announced FHFA Director James 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.” During November 2008, both Freddie and Fannie announced a suspension of foreclosure sales and evictions scheduled to occur from Nov. 26 through Jan. 9 on single-family properties. The moratorium was extended to Jan. 31. The extension, FHFA indicated, allowed servicers additional time to work with borrowers in foreclosure. Specifically, they targeted eligible borrowers for the Streamlined Modification Program (SMP), which kicked off Dec. 15. “Because only two business days of foreclosure activities in November were impacted by the suspension, it had little effect on the month’s performance. However, it is expected the impact of the suspension will be greater for performance to be reported for December and January,” the FHFA predicted in a release. The FHFA report showed that as of Nov. 30, of the government-sponsored enterprises’ (GSEs’) 30.6 million residential mortgages:
* Loans 60 days or more delinquent, including those in bankruptcy and foreclosure, as a percent of all loans increased to 2.73%, up from 1.46% as of March 31, 1.73% as of June 30, 2.21% as of Sept. 30, and 2.39% for October; and * Loans 90 days or more delinquent, including those in bankruptcy and foreclosure, as a percent of all loans increased to 1.88%, up from 1.00% as of March 31, 1.19% as of June 30, 1.52% as of Sept. 30, and 1.67% for October.
The report also showed that loans that became the subject of foreclosure proceedings dropped to 5.25% in November for loans 60 or more days delinquent. That was down from a high of 8.29%for the first quarter of the year. And for similarly delinquent loans for which foreclosure was completed, the November figure dropped to 1.73%, down from a third-quarter high of 2.56%. Loan modifications numbers also improved. Compared with the monthly average of 4,948 for the first nine months of 2008, October modifications increased by 13.2% and 67.6% for November. There were 8,291 for November. The loss mitigation ratio for November was 61.7% – the highest since June 2008, which was reported at 64.8%. The year-to-date loss mitigation ratio is 55.2%. Freddie and Fannie were place into conservatorship run by the FHFA on Sept. 7, 2008.