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Thursday, January 20, 2011

Fannie Mae and Freddie Mac Delinquency Rates Decline Slightly

Fannie Mae and Freddie Mac Delinquency Rates Decline But Only Slightly
The serious delinquency rate of Fannie Mae loans decreased to 4.50% in November from 4.52% in October.  Similarly, Freddie Mac loans that the serious delinquency rate decreased to 3.84% in December from 3.85% in November. (Note: Fannie reports a month behind Freddie).   Loans that are seriously delinquent are "three monthly payments or more past due or in foreclosure".
Freddie Mac Seriously Delinquent Rate

Some of the rapid increase in loans in a  foreclosure status over the last couple of years was likely due to foreclosure moratoriums.   As these foreclosures were delayed, the number of loans remaining in foreclosure status built. Another factor contributing to the increase loans in foreclosure status is the lending policy which considers in loans in trial mods as delinquent until the modifications are permanent. As modifications have become permanent, they are no longer counted as delinquent. 
The number of homes in a foreclosure status has started to decrease as foreclosure sales have been finalized more rapidly and the lenders take possession of the these homes.

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