Federal Housing Finance Agency

FEDERAL HOUSING FINANCE AGENCY

NEWS RELEASE For Immediate Release August 3, 2009

Contact:

Corinne Russell Stefanie Mullin

(202) 414-6921 (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.

Foreclosure Prevention Report May 2009

Federal Housing Finance Agency

60-plus-days Delinquency Rates

Foreclosure Prevention Actions Completed

Delinquency 60 Days+rates Delinquency continueRates to rise.

Completed loan modifications and repayment plans fell in May as servicers continue to focus on HAMP.

Credit quality continues to deteriorate... 12%

10.3%

Nonprime

10%

10%

8%

Nonprime

8%

6%

4.9%

6%

3.9%

Total

4%

4% 1.6%

Prime

1.0%

4.1%

2.7% 2.9% Total

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20

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HomeSaver Advance

15

Repayment Plans

10

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2%

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11.1% # of loans (thousands)

12%

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* Consists of forbearance plans, charge-offs in lieu, short sales and deeds-in-lieu

Reduce Rate and Extend Term

Foreclosure & Third-party Sales Completed

The proportion of loan modifications with both rate reductions and term extensions fell in May. 80%

73%

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67%

Foreclosure sales increased in May from sales of nonowner occupied properties and properties determined to be ineligible for HAMP.

75%

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Page 2

M a

Foreclosure Prevention Report May 2009

Federal Housing Finance Agency

18,000

Loan Modifications Completed

Repayment Plans Completed

Completed loan modifications fell for second consecutive month in May as servicers continue to focus on HAMP.

Completed repayment plans fell for third consecutive month in May as some borrowers were evaluated for HAMP eligibility.

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2,000

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Foreclosure Starts Foreclosure Starts

Completed HSA funding declined in May as Fannie Mae fell in April as Fannie Mae continues to deemphasizing continues to deemphasize the program. the program.

12000 12000 10000 10000 8000 8000

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Page 3

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