FORECLOSURE PREVENTION REPORT

Transcription

1 FORECLOSURE PREVENTION REPORT FEDERAL PROPERTY MANAGER'S REPORT MAY 20

2 FHFA Foreclosure R e p o r t T i t l e ( Prevention I n t e r i o r Pa g e T ireport t l e ) May 20 May 20 Highlights The Enterprises' Foreclosure Prevention Actions: The Enterprises completed 20,82 foreclosure prevention actions in May 20, bringing the total to 3,20,0 since the start of the conservatorships in September Over half of these actions have been permanent loan modifications. There were,069 permanent loan modifications in May, bringing the total to,820,692 since the start of conservatorships. The share of modifications with principal forbearance remained at 9 percent while modifications with extendterm only was 7 percent in May due to improved house prices and a declining HAMP eligible population. There were 2,882 short sales and deeds-in-lieu completed in May, down 6 percent compared with April. The Enterprises' Mortgage Performance: The serious delinquency rate fell to.6 percent at the end of May, down from.70 percent at the end of April. The Enterprises' Foreclosures: Third-party and foreclosure sales declined 8 percent to 9,929, while foreclosure starts increased percent to 20,6 in May. Foreclosure Prevention Activities Apr- May- HAMP Active Trials,97,69 HAMP Active Permanent - Cumulative 2,08 09,9 Completed Foreclosure Prevention Actions Loan Modifications *,8,069 Repayment Plans 3,2 3,00 Forbearance Plans Charge-offs-in-lieu Home Retention Actions 8,899 7,930 Short Sales 2,6 2,088 Deeds-in-lieu,03 79 Home Forfeiture Actions 3,7 2,882 TOTAL 22,36 20,82 * Includes HAMP permanent modifications. Mortgage Performance (at period end) Apr- May Days Delinquent 36,82 08,98 60-plus-days Delinquent 69,32 6,66 Foreclosure Starts 9,00 20,6 Third-party & Foreclosure Sales 0,72 9,929 (Percent of total loans serviced) 30-9 Days Delinquent.3%.7% 60-plus-days Delinquent 2.0% 2.02% Seriously Delinquent*.70%.6% * 90 days or more delinquent, or in the process of foreclosure. Please see glossary on page Page 2

3 # of loans in thousands # of loans in thousands FHFA Foreclosure R e p o r t T i t l e ( Prevention I n t e r i o r Pa g e TReport i t l ) May 20 6% Enterprises' 60-plus-days Delinquency Rates 60-plus-days delinquency rate continued to decline in May 20..8% 0 Foreclosure Prevention Actions Completed Foreclosure prevention actions decreased 7 percent in May as house prices continued to improve and serious delinquent loans declined. % 2%.% 2.0% Short Sales & Deeds-In- Lieu Forbearance Plans 2 Repayment Plans 2 Loan Modifications 0% 0 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 20 0 Completed loan modifications Loan modifications declined percent in May. 7 Freddie Mac HAMP Statistics 3 Cumulative from April 2009 through Apr- May- Trials Ever Started,080,32,08,330 Less: Trials Disqualified (79,6) (79,662) Trials Cancelled (30,972) (3,07) Permanent Modifications (6,37) (6,97) Trials Remaining Active,97, May- Jun- Jul- Aug- Sep- Oct- Nov Dec- Jan- Feb Mar- Apr- May- Fannie Mae Permanent Modifications Started 6,37 6,97 Less: Modifications Defaulted (97,0) (99,236) Modifications Paid off (3,89) (36,33) Modifications Withdrawn (63) (227) Active Permanent Modifications 2,08 09,9 Includes loans with missing original credit score. 2 Includes loans that were 30+ days delinquent at initiation of the plan. In addition, the completed forbearance plans data hav e been revised to exclude HAMP. 3 HAMP trial modifications are based on the first trial payment posted date. HAMP permanent modifications are based on the effective date of modification. As of May 3, 20, Fannie Mae had 22,9 HAMP active permanent modifications and Freddie Mac had 66,20 HAMP active permanent modifications. Please see glossary on page Page 3

4 FHFA Foreclosure Prevention Report May 20 Full Year 202 Full Year 203 Full Year 20 YTD May- Conservatorship to Date Home Retention Actions Repayment Plans 2,6 8,386,8 8,693 82,36 Forbearance Plans 22,82 2,67,260,7 7,70 Charge-offs-in-lieu,33 67,378,702 HomeSaver Advance (Fannie) ,78 Loan Modifications 232,993 23,9 89,97 69,97,820,692 Total 399,7 3,899 2,09 93,280 2,899,632 Nonforeclosure - Home Forfeiture Actions Short Sales 2,232 87,72 38,98,238 7,239 Deeds-in-lieu 6,232 8,087,926,600 73,630 Total,6 0,829 3,2, ,869 Total Foreclosure Prevention Actions,29 7, ,28 09,8 3,20,0 Since the first full quarter in conservatorship (Q08). Completed Foreclosure Prevention Actions Since the first full quarter in conservatorship (Q08), combined completed foreclosure prevention actions total 3,20,0. More than half of these actions are permanent loan modifications. Please see glossary on page Page

5 FHFA Foreclosure Prevention Report May 20,000 Short Sales Completed short sales decreased percent in May. 20,000 Foreclosure Sales and Third-party Sales Foreclosure and third-party sales declined 8 percent in May.,000,000 3,000 0,000 2,000 Freddie Mac Freddie Mac,000 Fannie Mae,000 Fannie Mae 0 May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 0 May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Please see glossary on page Page

6 FHFA Foreclosure Prevention Report May 20 (i) Enterprises Combined - Mortgage Performance (at period end) (# of loans in thousands) May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Total Loans Serviced 27,99 27,892 27,867 27,82 27,880 27,86 27,908 27,896 27,9 27,93 27,837 27,83 27,83 Original Credit Score >= 660 2,867 2,82 2,80 2,827 2,877 2,869 2,923 2,923 2,90 2,960 2,899 2,909 2,902 Original Credit Score < 660 3,02 3,00 3,027 3,0 3,003 2,99 2,98 2,973 2,96 2,93 2,938 2,92 2,92 Total Delinquent Loans,099,0,078,29,08,033,29,09,03, Original Credit Score >= Original Credit Score < Days Delinquent Original Credit Score >= Original Credit Score < Days Delinquent Original Credit Score >= Original Credit Score < plus-days Delinquent Original Credit Score >= Original Credit Score < Percent of Total Loans Serviced Total Delinquent Loans 3.9% 3.9% 3.87%.06% 3.89% 3.7%.0% 3.80% 3.77% 3.73% 3.37% 3.36% 3.9% Original Credit Score >= % 2.6% 2.8% 2.69% 2.9% 2.6% 2.69% 2.% 2.% 2.% 2.26% 2.2% 2.32% Original Credit Score < 660.%.6%.%.32%.68%.06%.37%.8%.3%.02% 2.76% 2.83% 3.6% 30-9 Days Delinquent.%.8%.%.6%.0%.39%.69%.8%.0%.2%.26%.3%.7% Original Credit Score >= % 0.9% 0.9%.03% 0.9% 0.88%.09% 0.9% 0.96%.00% 0.82% 0.8% 0.9% Original Credit Score < %.9%.8% 6.63% 6.0%.6% 6.72% 6.06% 6.00%.86%.06%.29%.92% Days Delinquent 0.3% 0.% 0.% 0.7% 0.6% 0.% 0.7% 0.% 0.% 0.2% 0.38% 0.37% 0.0% Original Credit Score >= % 0.27% 0.27% 0.28% 0.28% 0.27% 0.29% 0.28% 0.27% 0.26% 0.2% 0.23% 0.2% Original Credit Score < %.8%.8%.97%.9%.8% 2.0%.93%.90%.76%.6%.6%.69% 60-plus-days Delinquent 2.9% 2.7% 2.2% 2.2% 2.39% 2.32% 2.36% 2.3% 2.28% 2.2% 2.0% 2.0% 2.02% Original Credit Score >= %.70%.67%.66%.63%.9%.60%.7%.%.%.%.0%.37% Original Credit Score < % 8.69% 8.6% 8.69% 8.6% 8.2% 8.66% 8.2% 8.% 8.6% 7.70% 7.% 7.% Serious Delinquency Rate 2.09% 2.06% 2.0%.99%.96%.92%.9%.89%.86%.82%.76%.70%.6% In Bankruptcy 0.38% 0.38% 0.37% 0.37% 0.3% 0.36% 0.36% 0.3% 0.3% 0.3% 0.33% 0.3% 0.33% Please see glossary on page Page 6

7 FHFA Foreclosure Prevention Report May 20 (ii) Fannie Mae - Mortgage Performance (at period end) (# of loans in thousands) May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Total Loans Serviced 7,28 7,03 7,87 7, 7,63 7,33 7,72 7,66 7,80 7,2 7,08 7,396 7,366 Original Credit Score >= 660,606,89,80,,70,8,89,90,608,89,3,9,2 Original Credit Score < 660,922,9,907,900,893,886,883,876,872,863,8,88,80 Total Delinquent Loans Original Credit Score >= Original Credit Score < Days Delinquent Original Credit Score >= Original Credit Score < Days Delinquent Original Credit Score >= Original Credit Score < plus-days Delinquent Original Credit Score >= Original Credit Score < Percent of Total Loans Serviced Total Delinquent Loans 3.9% 3.9% 3.87%.09% 3.90% 3.72%.0% 3.8% 3.79% 3.76% 3.2% 3.2% 3.8% Original Credit Score >= % 2.6% 2.8% 2.7% 2.60% 2.8% 2.70% 2.2% 2.2% 2.% 2.29% 2.29% 2.39% Original Credit Score < 660.7%.6%.0%.37%.6%.00%.27%.%.3% 3.98% 2.8% 2.96% 3.6% 30-9 Days Delinquent.%.7%.3%.6%.0%.37%.67%.8%.9%.2%.27%.32%.8% Original Credit Score >= % 0.93% 0.89%.03% 0.9% 0.87%.07% 0.93% 0.96%.00% 0.8% 0.8% 0.96% Original Credit Score < %.92%.80% 6.68% 6.02%.7% 6.6% 6.03%.93%.82%.07%.3%.9% Days Delinquent 0.% 0.2% 0.2% 0.% 0.% 0.2% 0.% 0.3% 0.2% 0.0% 0.36% 0.36% 0.39% Original Credit Score >= % 0.26% 0.26% 0.27% 0.27% 0.2% 0.27% 0.26% 0.26% 0.2% 0.23% 0.22% 0.2% Original Credit Score < %.77%.77%.88%.86%.76%.9%.8%.80%.67%.9%.%.6% 60-plus-days Delinquent 2.0% 2.8% 2.% 2.% 2.% 2.3% 2.38% 2.3% 2.30% 2.2% 2.% 2.0% 2.0% Original Credit Score >= 660.7%.72%.69%.68%.6%.6%.62%.9%.6%.%.8%.%.3% Original Credit Score < % 8.70% 8.9% 8.70% 8.63% 8.3% 8.63% 8.% 8.2% 8.7% 7.78% 7.66% 7.70% Serious Delinquency Rate 2.08% 2.0% 2.00%.99%.96%.92%.9%.89%.86%.83%.78%.73%.70% In Bankruptcy 0.3% 0.3% 0.3% 0.3% 0.33% 0.3% 0.3% 0.33% 0.33% 0.33% 0.32% 0.33% 0.33% Please see glossary on page Page 7

8 FHFA Foreclosure Prevention Report May 20 (iii) Freddie Mac - Mortgage Performance (at period end) (# of loans in thousands) May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Total Loans Serviced 0,39 0,388 0,38 0,398 0,7 0,27 0,3 0,30 0,3 0,6 0,29 0,39 0,8 Original Credit Score >= 660 9,26 9,263 9,26 9,283 9,306 9,32 9,33 9,333 9,32 9,37 9,36 9,36 9,376 Original Credit Score < 660,30,26,20,,,06,02,097,093,090,083,078,07 Total Delinquent Loans Original Credit Score >= Original Credit Score < Days Delinquent Original Credit Score >= Original Credit Score < Days Delinquent Original Credit Score >= Original Credit Score < plus-days Delinquent Original Credit Score >= Original Credit Score < Percent of Total Loans Serviced Total Delinquent Loans 3.93% 3.9% 3.87%.0% 3.86% 3.68%.0% 3.76% 3.7% 3.68% 3.28% 3.2% 3.33% Original Credit Score >= % 2.63% 2.8% 2.66% 2.6% 2.% 2.68% 2.8% 2.8% 2.7% 2.20% 2.7% 2.2% Original Credit Score < 660.7%.70%.%.23%.7%.%.%.66%.9%.08% 2.62% 2.6% 3.2% 30-9 Days Delinquent.7%.0%.7%.63%.%.%.7%.9%.%.2%.26%.29%.% Original Credit Score >= % 0.96% 0.9%.0% 0.97% 0.89%.% 0.9% 0.97%.00% 0.82% 0.8% 0.93% Original Credit Score < % 6.0%.9% 6.% 6.09%.7% 6.8% 6.3% 6.2%.9%.0%.26%.87% Days Delinquent 0.6% 0.7% 0.8% 0.0% 0.0% 0.7% 0.% 0.9% 0.8% 0.% 0.0% 0.39% 0.% Original Credit Score >= % 0.29% 0.29% 0.30% 0.3% 0.29% 0.3% 0.30% 0.29% 0.28% 0.2% 0.2% 0.2% Original Credit Score < %.9%.99% 2.0% 2.09%.97% 2.8% 2.08% 2.07%.9%.68%.66%.78% 60-plus-days Delinquent 2.6% 2.% 2.0% 2.37% 2.3% 2.27% 2.32% 2.27% 2.2% 2.6% 2.02%.9%.89% Original Credit Score >= %.68%.6%.62%.60%.%.7%.%.%.7%.38%.33%.28% Original Credit Score < % 8.69% 8.63% 8.68% 8.6% 8.39% 8.70% 8.3% 8.7% 8.% 7.7% 7.3% 7.2% Serious Delinquency Rate 2.0% 2.07% 2.02%.98%.96%.9%.9%.88%.86%.8%.73%.66%.8% In Bankruptcy 0.3% 0.2% 0.% 0.0% 0.0% 0.38% 0.39% 0.38% 0.37% 0.37% 0.3% 0.3% 0.33% Please see glossary on page Page 8

9 FHFA Foreclosure Prevention Report May 20 2 Enterprises Combined - Foreclosure Prevention Actions (# of loans) May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- YTD 20 Starts 2 HAMP Active Trial & Perm. - Cum. 39,368 38,68 36,696 3,692 33,93 3,26 29,2 27,398 2,7 22,77 20,72 7,68,83,83 Repayment Plans 9,36,098 0,6 0,38 0,3 9,922 0,09 9,90 8,963 7,0 9,928 6,960 6,837 0,38 Forbearance Plans 6,860,9,79,82,822,29,2,97,28 3,76 3,396 2,60 2,87 6,38 Completed Repayment Plans 3,63 3,700 3,89 3,77 3,63 3,88 3,00,8 3,897,00, 3,2 3,00 8,693 Forbearance Plans 3,038,6, , ,7 Charge-offs-in-lieu HomeSaver Advance (Fannie) Loan Modifications,98,897 7,39,739 3,66,66,93,322 3,39 3,6,626,8,069 69,97 Home Retention Actions 2,67 20,320 22,83 9,38 8,08 9,67,67 9,827 8,23 8,39 9,90 8,899 7,930 93,280 Short Sales 3,0 3,2 3,322 3,079 2,80 2,632 2,08 2,869 2,06,986 2,22 2,6 2,088,238 Deeds-in-lieu,232,230,3,69,92,8 926,0, ,03 79,600 Nonforeclosure - Home Forfeiture Actions,782,72,633,28 3,997 3,86 3,007 3,979 3,6 2,823 3,30 3,7 2,882,838 Total Foreclosure Prevention Actions 26,39 2,062 27,26 23,386 22,0 23,383 8,682 23,806 2,787 2,2 23,03 22,36 20,82 09,8 Percent of Total Foreclosure Prevention Actions Repayment Plans 7% % % % 6% 7% 6% 9% 8% 9% 8% 6% % 7% Forbearance Plans % 6% % % % % 3% % 3% % % 3% 3% % Charge-offs-in-lieu 0% % 0% 0% 0% 0% 0% % 0% 0% 0% 0% 0% 0% HomeSaver Advance (Fannie) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Loan Modifications 60% 9% 6% 63% 6% 63% 6% 60% 62% 62% 6% 6% 68% 6% Home Retention Actions 82% 8% 83% 82% 82% 8% 8% 83% 8% 87% 86% 8% 86% 8% Short Sales 3% % 2% 3% 3% % % 2% 2% 9% 0% % 0% 0% Deeds-in-lieu % % % % % % % % % % % % % % Nonforeclosure - Home Forfeiture Actions 8% 9% 7% 8% 8% 6% 6% 7% 6% 3% % % % % The number of foreclosure prevention actions reported in this table may not tie to the Enterprises' financial statements due to timing differences in reporting systems. 2 Forbearance plans initiated include HAMP trials initiated by servicers under the MHA program. HAMP trial modifications are based on the first trial payment posted date. HAMP permanent modifications are based on the effective date of modification. As of May 3, 20, Fannie Mae had 22,9 HAMP active permanent modifications and Freddie Mac had 66,20 HAMP active permanent modifications. 3 Includes loans that were 30+ days delinquent at initiation of the plan. In addition, the completed forbearance plans data have been revised to exclude HAMP. Please see glossary on page Page 9

10 FHFA Foreclosure Prevention Report May 20 3(i) Enterprises Combined - Loan Modifications May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- YTD 20 Loan Modifications (# of loans),98,897 7,39,739 3,66,66,93,322 3,39 3,6,626,8,069 69,97 Types of Modification (%) Extend Term Only 33% 37% 39% 0% 2% % % 7% 8% 9% 8% 8% 7% 8% Reduce Rate Only % % % % % % 3% 3% 3% 3% 3% 3% 2% 3% Reduce Rate and Extend Term 37% 3% 33% 33% 32% 30% 3% 3% 3% 30% 30% 30% 3% 30% Reduce Rate, Extend Term and Forbear Principal 2% 23% 22% 23% 22% 2% 2% 9% 8% 8% 9% 9% 9% 9% Other 0% % % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Please see glossary on page Page 0

11 FHFA Foreclosure Prevention Report May 20 3(ii) Fannie Mae - Loan Modifications May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- YTD 20 Loan Modifications (# of loans) 0,606 0,083 0,82 9,36 8,68 9,0 7,7 8,9 8,76 8,72 9,82 9,279 8,79,8 Types of Modification (%) Extend Term Only 2% % 6% % 6% 0% % 0% 2% 2% 2% 3% % 2% Reduce Rate Only % % % % % % % % 3% % 3% 3% 3% 3% Reduce Rate and Extend Term 30% 29% 27% 27% 26% 2% 2% 26% 2% 2% 2% 2% 2% 2% Reduce Rate, Extend Term and Forbear Principal 23% 23% 22% 23% 23% 22% 2% 20% 9% 20% 2% 20% 2% 20% Other 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Please see glossary on page Page

12 FHFA Foreclosure Prevention Report May 20 3(iii) Freddie Mac - Loan Modifications May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- YTD 20 Loan Modifications (# of loans),378,8 6,727,37,782,2,8,37,793,68,,306,90 2,7 Types of Modification (%) Extend Term Only 6% 2% 29% 32% 33% 36% 3% % 39% 3% 0% % 0% % Reduce Rate Only % % % % % 3% 3% 3% 3% 3% 3% 2% 2% 3% Reduce Rate and Extend Term % 9% % 3% 2% % 0% 39% 2% 39% 0% % % 0% Reduce Rate, Extend Term and Forbear Principal 28% 2% 23% 2% 2% 9% 2% 7% 6% % 7% 6% 7% 6% Other % % % 0% % 0% % 0% 0% 0% 0% 0% 0% 0% Please see glossary on page Page 2

13 FHFA Foreclosure Prevention Report May 20 Enterprises Combined - Home Forfeiture Actions (# of loans) May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- YTD 20 Short Sales 3,0 3,2 3,322 3,079 2,80 2,632 2,08 2,869 2,06,986 2,22 2,6 2,088,238 Deeds-in-lieu,232,230,3,69,92,8 926,0, ,03 79,600 Nonforeclosure - Home Forfeiture Actions,782,72,633,28 3,997 3,86 3,007 3,979 3,6 2,823 3,30 3,7 2,882,838 Third-party Sales,986 2,38 2,9 2,2 2,262 2,37,88 2,082 2,7 2,3 2,32 2,99 2,69,977 Foreclosure Sales 2,367,272,286 0,308 0,6,839 8,666 9,37 0,87 8, 8,682 8,3 7,60 3,67 Third-party & Foreclosure Sales,33 3,630 3,80 2,23 2,727,23 0,,29 3,32 0,2,007 0,72 9,929, Foreclosure Starts 30,792 28,73 26,03 2,67 27,0 27,26 2,27 2,8 2,903 2,63 22,72 9,00 20,6 0,328 Top Five Reasons for Delinquency Curtailment of Income 30% 29% 29% 29% 27% 27% 27% 26% 26% 26% 2% 2% 2% Excessive obligations 20% 20% 20% 20% 2% 2% 2% 2% 2% 2% 20% 20% 8% Unemployment 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 7% 7% 7% Illness of principal mortgagor or family member % % % % 6% 6% 6% 6% 6% 6% 6% 6% 6% Marital Difficulties % % % % % % % % % % % % % Short sales and deeds-in-lieu of foreclosure completed. Please see glossary on page Page 3

14 FHFA Foreclosure Prevention Report May 20 FHFA produces monthly and quarterly versions of the Foreclosure Prevention Report. In addition to the data provided in the monthly reports, the quarterly reports include the following information: MHA program updates; benchmarking of the Enterprises delinquency rates; the type and depth of loan modifications; and the performance of modified loans. Glossary Data and definitions in this report have been revised relative to prior versions of the report. FHFA continues to work with the Enterprises to improve the comparability of reported data. Section : Mortgage Performance Total Loans Serviced - Total conventional active book of business, excluding loans that were liquidated during the month. Current and Performing - Loans that are making timely payments and are 0 months delinquent as of the reporting month. Total Delinquent Loans - Loans that are at least one payment past due, i.e., total servicing minus current and performing Days Delinquent - Includes loans that are only one payment delinquent Days Delinquent - Includes loans that are only two payments delinquent. 60-plus-days Delinquent - Loans that are two or more payments delinquent, including loans in relief, in the process of foreclosure, or in the process of bankruptcy, i.e., total servicing minus current and performing, and 30 to 9 days delinquent loans. Our calculation may exclude loans in bankruptcy process that are less than 60 days delinquent. Serious Delinquency - All loans in the process of foreclosure plus loans that are three or more payments delinquent (including loans in the process of bankruptcy). In Bankruptcy - Loans in the process of bankruptcy; includes all delinquency status. Section 2: Completed Foreclosure Prevention Actions Home Retention Actions - Repayment plans, forbearance plans, charge-offs in lieu of foreclosure, Home Saver Advances, and loan modifications. Home retention actions allow borrowers to retain ownership/occupancy of their homes while attempting to return loans to current and performing status. Repayment Plans - An agreement between the servicer and a borrower that gives the borrower a defined period of time to reinstate the mortgage by paying normal regular payments plus an additional agreed upon amount in repayment of the delinquency. Forbearance Plans - An agreement between the servicer and the borrower (or estate) to reduce or suspend monthly payments for a defined period of time after which borrower resumes regular monthly payments and pays additional money toward the delinquency to bring the account current or works with the servicer to identify a permanent solution, such as loan modification or short sale, to address the delinquency. Charge-offs-in-lieu of Foreclosure - A delinquent loan for which collection efforts or legal actions against the borrower are agreed to be not in the Enterprises' best interests (because of reduced property value, a low outstanding mortgage balance, or presence of certain environmental hazards). The servicer charges off the mortgage debt rather than completing foreclosure and taking the property title. The borrower retains the property. The unpaid mortgage balance becomes a lien on the borrower s property, which must be satisfied when the borrower transfers ownership. HomeSaver Advance (Fannie Mae) - An unsecured personal loan to a qualified borrower to cure his or her payment defaults under a mortgage loan the Enterprises own or guarantee. The borrower must be able to resume regular monthly payments on his or her mortgage. The program ended in 200. Loan Modifications - Number of modified, renegotiated, or restructured loans, regardless of performance-to-date under the plan during the month. Terms of the contract between the borrower and the lender are altered with the aim of curing the delinquency (30 days or more past due). Nonforeclosure-Home Forfeiture Actions- Short sales and deeds-in-lieu of foreclosure. These actions require borrowers to give up their homes. Although homes are forfeited, foreclosure alternatives generally have less adverse impact on borrowers and their credit reports than foreclosure. Short Sales - A short sale (also called a preforeclosure sale) is the sale of a mortgaged property at a price that nets less than the total amount due on the mortgage (e.g., the sum of the unpaid principal balance, accrued interest, advanced escrows, late fees, and delinquency charges.) The servicer and borrower negotiate payment of the difference between the net sales price and the total amount due on the mortgage. Deed(s)-in-lieu of Foreclosure - A loan for which the borrower voluntarily conveys the property to the lender to avoid a foreclosure proceeding. Section 3: Loan Modifications Increase - Principal and interest after modification is higher than before the modification. No Increase - Original principal and interest is unchanged after the modifications. Decrease <=20% - Original principal and interest is decreased by 20 percent or less after modification. Decrease >20% - Original principal and interest is decreased by more than 20 percent after modification. Extend Term Only - Remaining term of the loan is longer after modification. Reduce Rate Only - Loan's rate is lower after modification. Reduce Rate and Extend Term - Loan's rate reduced and term extended. Reduce Rate, Extend Term, and Forbear Principal - Modification includes term extension, rate reduction, and forbearance of principal. Other - A modification that does not fit in any of the above categories. The majority of these loans are capitalized modifications. Section : Third-party Sales and Foreclosures Third-party Sales - A third party entity purchases the property at the foreclosure sale/auction above the initial bid set forth by Fannie Mae or Freddie Mac. Foreclosure Starts - The total number of loans referred to an attorney to initiate the legal process of foreclosure during the month. These are loans measured as not being in foreclosure in the previous month but referred to foreclosure in the current month. Foreclosure Sales - The number of loans that went to foreclosure (sheriff's) sale during the month. Page