The number of Fannie Mae and Freddie Mac borrowers who are more than 60 days delinquent has fallen to its lowest level since 2009.
The mortgage giants have reported that the number of borrowers who are more than 60 days delinquent declined 11% in the first quarter to the lowest level since the first quarter of 2009. Half of troubled borrowers who received permanent loan modifications in the first quarter had their monthly payments reduced by more than 30%.
A new streamlined modification initiative, announced during the first quarter, will take effect on July 1. Although numbers are not available yet, the program is expected to help eligible homeowners who have missed at least three monthly payments modify their mortgage by eliminating administrative barriers associated with document collection and evaluation.
Fannie and Freddie completed more than 130,000 foreclosure prevention actions during the first quarter of 2013, bringing the total foreclosure prevention actions to nearly 2.8 million since the start of conservatorship in 2008.
The results were detailed in the Federal Housing Finance Agency’s first quarter 2013 Foreclosure Prevention Report.