August Loan Modifications Lowest of the Year for Freddie Mac

September 26, 2011 (Brian Michael)

Freddie Mac completed 8,639 loan modifications in the month of August, the lowest total amount of modifications completed in any month since the beginning of the year according to the recently released Monthly Volume Summary for August.

For the eight months ending August 31, 2011, Freddie Mac has completed 83,661 loan modifications, an average of 10,458 loan modifications per month.

The delinquency rate for single-family homes in Freddie Mac’s portfolio decreased to 3.49 percent from 3.51 percent in July. A year ago the delinquency rate for single-family homes was 3.83 percent.

Single-family home delinquency rates have dropped every month for the last year with the exception of November 2010 when the delinquency rate increased from 3.82 percent the previous month to 3.85 percent in November.

Delinquency rates for multi-family dwellings in August remained unchanged from 0.35 percent in July. The delinquency rate in August 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 decreased at an annualized rate of 2.2 percent from July to August as their total holdings decreased from $2.120 trillion to $2.116 trillion.

Single-family refinance loan purchase and guarantee volume was $16.3 billion in August, reflecting 59 percent of total mortgage purchases and issuances. That was an increase from $12.2 billion in July and down from $21.2 billion in August of last year.

Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications

Source:
Freddie Mac
LoanRateUpdate.com