80,000 Foreclosures prevented!

The Federal Housing Finance Agency (FHFA) indicated in its report on foreclosure prevention  for Q2 2014 released on September 24, that Fannie Mae and Freddie Mac  prevented nearly 80,000 foreclosures nationwide in the second quarter, raising the total number of foreclosures prevented since the start of the conservatorship in September 2008 to 3.3 million.

fThe measures taken by the two GSEs to prevent foreclosures have helped about 2.7 million borrowers remain in their homes in the last six years, with approximately 1.7 million of those borrowers receiving permanent loan modifications. The number of foreclosures prevented is down 10 percent from Q1, when GSE measures stopped almost 89,000 foreclosures.

FHFA reports as well that about 37 percent of those who received permanent loan modifications were able to reduce their monthly payments by more than 30 percent in second quarter.

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Fannie Mae reduces waiting period for distressed borrowers

Fannie Mae reduces waiting period for distressed borrowers

A recent report revising the waiting periods for distressed borrowers with a derogatory credit event such as a foreclosure, bankruptcy, short sale, or deed-in-lieu of foreclosure on their credit history to obtain a new loan has been released by Fannie Mae. This revised statement reduces the waiting period up to two years for borrowers with a short sale or deed-in-lieu of foreclosure on their record if there are extenuating circumstances that borrowers can prove. FannieMae

According to Fannie Mae, extenuating circumstances are defined as “nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.”

If a borrower has a foreclosure on his or her credit record, the new minimum waiting period is seven years. Under extenuating circumstances, that period is shortened to three years with some additional requirements for up to seven years. For those with a bankruptcy the waiting period is four years but two years with extenuating circumstances from the discharge date.

Fannie Mae said in the report that it is “focused on helping lenders to provide access to mortgages for creditworthy borrowers while supporting sustainable homeownership” and that the new policy “provides opportunities for borrowers to obtain a loan to Fannie Mae’s maximum LTV (loan-to-value) sooner after the Pre-foreclosure, Short Sale or DIL.”

Record Number Reached Refinancing Under MHA – HARP

Record Number Reached Refinancing Under MHA – HARP

Record Number Reached Refinancing Under MHA – HARP

In a report published on Monday, the Federal Housing Finance (FHFA) announced that Fannie Mae and Freddie Mac had managed to reach a record in the number of refinancing’s under the Affordable Refinance Program HARP with refinances reporting 3 Million.   The 3 million mark, is considered  an important step in achieving the goals that the FHFA is  proposed to help homeowners reduce their mortgage payments and keep their properties.

Only In November  the GSEs  reported 38,732 HARP refinancing’s, and to date 862,892.  Of these, 25,689 were for mortgages with loan relationship/value (LTV) of 80 to 105 percent, 7,612 loans with 105-125% LTV, while the rest were for loans of 125 +% LTV.

Likewise, the FHFA announced that it had completed more than 3 million shares of foreclosure prevention, which included  among others, loan modifications, and selling short since the government became sponsor of Fannie Mae and Freddie Mac in 2008 , more than 18 million mortgages have been refinanced through the GSE’s.  The new closing date for the Making Home Affordable Program is December  31, 2015.