Loan Modifications Completed by Freddie Mac Decline in July

Freddie Mac’s completed loan modifications fell by nearly ten percent in July according to the agency’s recently released Monthly Volume Summary.

Freddie Mac completed a total of 6,354 loan modifications in July, down 9.8 percent from the 7,044 loan modifications completed in June. So far this year, Freddie Mac has completed a total of 46,244 loan modifications for an average of 6,606 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 July, falling from 2.79 percent in June to 2.70 percent in July. Last year at this time, the delinquency rate for single-family homes was 3.42 percent and is at its lowest level since May of 2009.

Delinquency rates for multi-family dwellings declined in July, falling to 0.06 percent from 0.09 percent in June. The delinquency rate in July 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 1.7 percent from June to July as their total holdings fell from $1.945 trillion to $1.942 trillion.

Single-family refinance-loan purchase and guarantee volume was $26.7 billion in July, reflecting 69 percent of total mortgage purchases and issuances. That was down from $33.4 billion in June, a decrease of 20.1 percent. Mortgages that were refinanced for the purpose of homeowner relief captured about 32 percent of the total refinance volume, up from 30 percent the previous month.

Total refinance-loan purchase and guarantee volume was $42.3 billion, down 12.6 percent from $48.4 billion in June.

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