Delinquent GSE Mortgages Continue to Decline

The number of home loans backed by Fannie Mae and Freddie Mac that are 60 days or more past due or are in the foreclosure process fell 6 percent in the second quarter, following a first-quarter decline that marked the lowest level since the first quarter of 2008, according to the Federal Housing Finance Agency’s foreclosure prevention report released today.

Seriously delinquent loans — those that are 90 days or more past due — dropped to 1.2 percent of Fannie and Freddie’s mortgage portfolio after the second quarter, the lowest level since the GSEs have been under U.S. conservatorship. By comparison, 4.4 percent of Federal Housing Administration loans were seriously delinquent, and 3.1 percent of all loans were.

The report also documented the GSEs’ efforts to prevent foreclosures, with 48,438 modifications or other actions in the second quarter and just over 3.7 million since the conservatorships began.