FEDERAL HOUSING FINANCE AGENCY

NEWS RELEASE

For Immediate Release Contact: Corinne Russell (202) 414-6921

August 3, 2009 Stefanie Mullin (202) 414-6376

FHFA Reports Fannie Mae and Freddie Mac

Foreclosure Prevention Efforts for May
Washington, DC – Federal Housing Finance Agency Director James B. Lockhart today released
FHFA’s latest Foreclosure Prevention Report detailing actions taken by Fannie Mae and Freddie Mac
to prevent unnecessary foreclosures and keep people in their homes. The report includes loan
modification data under FHFA’s Streamlined Modification Program, which was initiated in
November 2008 but ended in April 2009. This report does not include data on refinancings or
modifications from the Administration’s Making Home Affordable Program announced in March
2009. The report shows that as of May 31, 2009, of the Enterprises’ 30 million residential
mortgages:

• Completed loan modifications fell for second consecutive month in May to approximately
10,400 as the Enterprises continue to focus on implementing the Home Affordable
Modification Program (HAMP). Modifications under the HAMP require a three-month trial
period for the borrower to demonstrate the ability and willingness to make modified
payments. Modifications under HAMP are counted as completed after the three-month trial
period is completed.

• Loan modifications accounted for 47 percent of all completed foreclosure prevention actions in
May. The majority of loans modified in May involved both rate reductions and term
extensions.

• Completed short sales increased 3 percent in May 2009 to nearly 3,700, more than three times
the volume one year earlier.

• Delinquencies continued to increase as approximately 80,100 more loans became 60 days or

more delinquent in May. Loans 60-plus-days delinquent increased approximately 7 percent
in May to 1.3 million.

• Curtailment of income continues to be the largest reason for delinquency, growing from 34
percent in January to 40 percent in May.

• Foreclosure starts in May increased 5 percent compared with April to nearly 90,600 from
processing of non-0wner occupied properties and properties determined to be ineligible for
HAMP.
 • Foreclosure and third-party sales increased to 19,300 in May up from 14,200 in April driven by
sales of non-occupied properties, and owner-occupied properties already determined to be
ineligible for HAMP.

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These
government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and
financial institutions.
Federal Housing Finance Agency Foreclosure Prevention Report
May 2009

60-plus-days Delinquency Rates Foreclosure Prevention Actions Completed

Delinquency
60 Days+rates
Delinquency
continueRates
to rise. Completed loan modifications and repayment plans fell
Credit quality continues to deteriorate... in May as servicers continue to focus on HAMP.

12% 11.1% 35
12% 10.3%
10% Nonprime 30

# of loans (thousands)
10% 25
8% Nonprime
Other *
8% 20
6% Fannie Mae
4.9% HomeSaver Advance
15
6% 3.9% 4.1%
4% Total Repayment Plans
10
2.7% 2.9%
Total Loan Modifications
4% 1.6% 5
2% Prime Freddie Mac
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Reduce Rate and Extend Term Foreclosure & Third-party Sales Completed
The proportion of loan modifications with both rate Foreclosure sales increased in May from sales of non-
reductions and term extensions fell in May. owner occupied properties and properties determined to
be ineligible for HAMP.
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Page 2
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Federal Housing Finance Agency Foreclosure Prevention Report
May 2009

Loan Modifications Completed Repayment Plans Completed

Completed loan modifications fell for second Completed repayment plans fell for third consecutive
consecutive month in May as servicers continue to month in May as some borrowers were evaluated for
focus on HAMP. HAMP eligibility.
18,000 7000
16,000 6000
13,787 5,504
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HomeSaver Advance Completed (Fannie) Foreclosure Starts

HomeSaver Advance (Fannie) Foreclosure Starts
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in April duestarts increasedsuspension
to temporarily in May fromofnon-owner
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14000 ineligible for HAMP.
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Page 3
Federal Housing Finance Agency Foreclosure Prevention Report
May 2009

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Federal Housing Finance Agency Foreclosure Prevention Report
May 2009

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Federal Housing Finance Agency Foreclosure Prevention Report
May 2009

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Federal Housing Finance Agency Foreclosure Prevention Report
May 2009

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Please see glossary on page 8 Page 7

Federal Housing Finance Agency Foreclosure Prevention Report
May 2009
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