July 30, 2012 (Brian Michael)
Loan modifications completed by Freddie Mac increased by almost 30 percent from May to June, while modifications through the government’s Home Affordable Refinance Program (HARP) made up 18 percent of the mortgage giant’s loan volume for the month according to the recently released Monthly Volume Summary.
Freddie Mac completed a total of 6,597 loan modifications in June, an increase of 29.6 percent over the 5,091 loan modifications completed in May. Through the first six months of 2012, Freddie Mac has completed a total of 28,819 loan modifications, an average of 4,803 per month, which is just over half of their 2011 average of 9,098 loan modifications per month.
The delinquency rate for single-family homes in Freddie Mac’s loan portfolio dipped to 3.45 percent from May to June.
In June of last year, the delinquency rate for single-family homes was 3.50 percent. It was the fifth consecutive month that delinquencies have declined.
Delinquency rates for multi-family dwellings in June edged up a notch for the second consecutive month, rising from 0.26 percent to 0.27 percent. The delinquency rate in June of last year was 0.31 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.
Single-family refinance-loan purchase and guarantee volume was $31.0 billion in June, reflecting 70 percent of total mortgage purchases and issuances. That was up from $22.1 billion in May.
Total refinance-loan purchase and guarantee volume was $44.1 billion, up from $30.7 billion in May, and included $8 billion in HARP refinance loans.
Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications