4.3 Million Homeowners Saved from Foreclosure Since Conservatorship

NAWRB

Desirée Patno is the CEO and President of Women in the Housing and Real Estate Ecosystem (NAWRB) and Desirée Patno Enterprises, Inc. (DPE). With almost three decades specializing in the Housing and Real Estate Ecosystem, she leads her executive team’s expertise of championing women’s economic growth and independence.

The Federal Housing Finance Agency (FHFA)’s first quarter 2019 Foreclosure Prevention Report states that the Enterprises Fannie Mae and Freddie Mac completed 38, 968 foreclosure prevention actions in the first quarter of 2019. This brings the total number of foreclosure prevention actions since conservatorship in 2008 to 4,322, 804.

The FHFA regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises (GSE’s) provide over $6.3 trillion in funding for the U.S. mortgage markets and financial institutions. In 2008, the federal government took control of the Enterprises to prevent them from failing during the credit crisis, which would have affected accessibility to home loans and possibly caused further collapse of the housing industry.

Of these 4.3 million actions made by the Enterprises, 3.6 million helped homeowners keep their homes with 2.3 million permanent loan modifications. The report also finds that 38 percent of loan modifications completed in the first quarter reduced borrowers’ monthly payments by over 20 percent.

Regarding mortgage performance, the serious (90 day or more) delinquency rate dropped to 0.71 percent by the end of the first quarter. In comparison, the serious delinquency rate dropped 3.45 percent for Federal Housing Administration loans, 1.87 percent for Veterans Affairs loans and 1.96 percent for all industry loans.

The Enterprises’ foreclosure starts decreased 7 percent to 33,475 from 36,002 in the fourth quarter of 2018. Meanwhile, foreclosure sales decreased 6 percent to 10,824 in the first quarter from 11,510 in the fourth quarter of 2018.

Read the FHFA’s foreclosure prevention report here.

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