FHFA: May Loan Modifications Drop, Foreclosure Starts Rise
04 August 2009 - 8:02AM
Dow Jones News
The Federal Housing Finance Agency said in a monthly report that
completed loan modifications fell for a second-straight month in
May, dropping to 10,400.
The modifications count for nearly half of the agency's May
foreclosure prevention efforts.
Meanwhile, foreclosure starts rose 5% to 90,600 as an increasing
number of properties ineligible for the Obama administration's
foreclosure prevention effort began moving through the process.
The FHFA, which oversees Fannie Mae (FNM) and Freddie Mac (FRE),
said both short sales and delinquencies continued rising in the
month. Short sales were up 3% to 3,700 - more than three times
their level a year earlier. Delinquencies of 60 days or more rose
by 80,100 while the total number of loans more than 60 days
delinquent was up 7% to 1.3 million in May.
The FHFA said lost income remains the top reason for borrowers
to become delinquent on their loans. The percentage of borrowers
blaming lost income for their delinquencies rose to 40% in May from
34% at the beginning of the year.
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629;
meena.thiruvengadam@dowjones.com