Freddie Mac Loan Modifications Rise

Completed loan modifications by Freddie Mac were nearly thirteen percent higher in August than in July according to the agency’s recently released Monthly Volume Summary.

Freddie Mac completed a total of 7,502 loan modifications in August, up 12.9 percent from the 6,354 loan modifications completed in July. So far this year, Freddie Mac has completed a total of 53,746 loan modifications for an average of 6,718 per month. In 2012, Freddie Mac completed a total of 69,581 loan modifications for an average of 5,798 per month.

The delinquency rate for single-family homes in Freddie Mac’s loan portfolio continued to improve in August, falling from 2.70 percent in July to 2.64 percent in August. Last year at this time, the delinquency rate for single-family homes was 3.36 percent and is at its lowest level since May of 2009.

Delinquency rates for multi-family dwellings declined in August, falling to 0.05 percent from 0.06 percent in July. The delinquency rate in August of last year was 0.29 percent.

Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on the unpaid principal balance of mortgages 60 days or more delinquent or in foreclosure as of period end.

Freddie Mac’s total mortgage portfolio decreased at an annualized rate of 5.0 percent from July to August as their total holdings fell from $1.942 trillion to $1.934 trillion.

Single-family refinance-loan purchase and guarantee volume was $20.8 billion in August, reflecting 63 percent of total mortgage purchases and issuances. That was down from $26.7 billion in July, a decrease of 22.1 percent. Mortgages that were refinanced for the purpose of homeowner relief captured about 33 percent of the total refinance volume, up from 32 percent the previous month.

Total refinance-loan purchase and guarantee volume was $36.0 billion, down 14.9 percent from $42.3 billion in July.

Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications

Source:
Freddie Mac

Reported by Jeff Alan