December 11, 2012 (Jeff Alan)
The number of loan modifications completed by Freddie Mac increased by over eleven percent during October while loan volume was at its highest level for the year according to the recently released Monthly Volume Summary.
Freddie Mac completed a total of 6,988 loan modifications in October, a gain of 11.5 percent over the 6,269 loan modifications completed in September. Through the first ten months of 2012, Freddie Mac has completed a total of 56,671 loan modifications, an average of 5,567 per month compared to an average of 9,098 loan modifications per month in 2011.
The delinquency rate for single-family homes in Freddie Mac’s loan portfolio fell from 3.37 percent to 3.31 percent after increasing for the first time this year the previous month. In October of last year, the delinquency rate for single-family homes was 3.54 percent.
Delinquency rates for multi-family dwellings declined from 0.27 percent in September to 0.24 percent in October. The delinquency rate in October of last year was 0.33 percent.
Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on the unpaid principal balance of mortgages 60 days or more delinquent or in foreclosure as of period end.
Freddie Mac’s total mortgage portfolio decreased at an annualized rate of 0.8 percent from September to October as their total holdings decreased from $1.973 trillion to $1.972 trillion.
Single-family refinance-loan purchase and guarantee volume was $37.2 billion in October, reflecting 74 percent of total mortgage purchases and issuances. That was up from $29.2 billion in September.
Total refinance-loan purchase and guarantee volume was a hefty $50.0 billion, up from $39.0 billion in September, an increase of 28.2 percent and the highest volume of any month in 2012.
Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications