Loan Modifications Hold Steady in May

The number of loan modifications completed by Freddie Mac in May remained at about the same levels as in April according to the agency’s recently released Monthly Volume Summary.

Freddie Mac completed a total of 6,165 loan modifications in May, almost unchanged from the 6,068 loan modifications completed in April. So far this year, Freddie Mac has completed a total of 32,846 loan modifications for an average of 6,569 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 May, falling from 2.91 percent in April to 2.85 percent in May. Last year at this time, the delinquency rate for single-family homes was 3.50 percent and is at its lowest level since June of 2009.

Delinquency rates for multi-family dwellings also fell in May, declining to 0.08 percent from 0.09 percent in April. The delinquency rate in May of last year was 0.26 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 3.0 percent from April to May as their total holdings fell from $1.949 trillion to $1.944 trillion.

Single-family refinance-loan purchase and guarantee volume was $30.5 billion in May, reflecting 72 percent of total mortgage purchases and issuances. That was down from $35.8 billion in April, a decline of 8.4 percent. Mortgages that were refinanced for the purpose of homeowner relief captured about 33 percent of the total refinance volume.

Total refinance-loan purchase and guarantee volume was $42.4 billion, down 10.4 percent from $47.3 billion in April.

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