Freddie Mac Loan Modifications Rise in June

The number of loan modifications completed by Freddie Mac increased by nearly 15 percent from May to June according to the agency’s recently released Monthly Volume Summary.

Freddie Mac completed a total of 7,044 loan modifications in June, up 14.3 percent from the 6,165 loan modifications completed in May. So far this year, Freddie Mac has completed a total of 39,890 loan modifications for an average of 6,648 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 decline in June, falling from 2.85 percent in May to 2.79 percent in June. Last year at this time, the delinquency rate for single-family homes was 3.45 percent and is at its lowest level since June of 2009.

Delinquency rates for multi-family dwellings increased slightly in June, increasing to 0.09 percent from 0.08 percent in May, a reversal from the previous month. The delinquency rate in June of last year was 0.27 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 increased at an annualized rate of 0.5 percent from May to June as their total holdings inched up from $1.944 trillion to $1.945 trillion.

Single-family refinance-loan purchase and guarantee volume was $33.4 billion in June, reflecting 69 percent of total mortgage purchases and issuances. That was up from $30.5 billion in May, an increase of 9.5 percent. Mortgages that were refinanced for the purpose of homeowner relief captured about 30 percent of the total refinance volume, down from 33 percent the previous month.

Total refinance-loan purchase and guarantee volume was $48.4 billion, up 14.2 percent from $42.4 billion in May.

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