The number of loan modifications completed by Freddie Mac was on the rise in October as the percentage of loans refinanced for homeowner relief purposes rolled past forty percent according to the agency’s recently released Monthly Volume Summary.
Freddie Mac completed a total of 7,902 loan modifications in October, up 18.2 percent from the 6,685 loan modifications completed in September. So far this year, Freddie Mac has completed a total of 68,333 loan modifications for an average of 6,833 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 October, falling from 2.58 percent in September to 2.48 percent in October. Last year at this time, the delinquency rate for single-family homes was 3.31 percent and is at its lowest level since April of 2009.
Delinquency rates for multi-family dwellings saw a slight uptick in October, increasing from 0.05 percent in September to 0.06 percent in October. The delinquency rate in October of last year was 0.24 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 6.4 percent from September to October as their total holdings fell from $1.927 trillion to $1.917 trillion.
Single-family refinance-loan purchase and guarantee volume was $12.0 billion in October, reflecting 58 percent of total mortgage purchases and issuances. That was down from $16.4 billion in September, a decrease of 26.8 percent. Mortgages that were refinanced for the purpose of homeowner relief captured about 42 percent of the total refinance volume, up from 39 percent the previous month.
Total refinance-loan purchase and guarantee volume was $22.4 billion, down 20.6 percent from $28.2 billion in September.
Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications
Reported by Jeff Alan