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The serious delinquency rate on single-family loans has fallen to its lowest level in six and a half years. Serious delinquency is when a single-family mortgage is 90 or more days past due and the bank considers the mortgage to be in danger of default. When a mortgage is in default, a lender usually initiates foreclosure proceedings.
Freddie Mac’s total mortgage portfolio has increased six times in the past seven months, expanding at an annualized rate of 0.9 percent in March of this year, according to DS News. The portfolio’s March increase represented a rise of about $1.5 billion.
The serious delinquency rate is currently at 1.73 percent on loans that declined from February to March, a drop by eight basis points— the lowest serious delinquency rate for loans backed by Freddie Mac since 2008.
There was an increase in the percentage of single-family refinance loan purchase and guarantee volume that comprised the total single-family mortgage portfolio, from 66 percent in February up to 68 percent in March. However, single-family refinance loan purchase and guarantee volume decreased in March after a huge increase from January to February. Ten percent of Freddie Mac’s total single-family refinance volume in March was comprised of relief refinance mortgages, an increase from nine percent.
In March, the number of homeowners who received permanent loan modifications totaled 5,144 a jump from the 4,684 modifications reported for February. Freddie Mac is averaging 4,874 modifications per month, as it has 14,621 modifications to date in 2015. An average of 5,596 permanent loan modifications were completed each month in 2014.
Freddie Mac reported that the aggregate unpaid principal balance (UPB)— the collective amount of principle owed on a loan— of the Enterprise’s mortgage-related investments portfolio in March increased each month by about $1.4 billion after dropping by about $3.2 billion from months January to February.