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Jun 20

Loan delinquency rate falling

First Quarter 2011

Fannie Mae March 2011 delinquency loans decreased 1.2% from last year to 4.27%, and Freddie Mac’s declined 1.43% from March 2010 to 3.63% in March 2011. These are loans that are “three monthly payments or more past due or in foreclosure”.

Some of the rapid increase in 2009 (see graph) was probably because of foreclosure moratoriums, and also because loans in trial mods were considered delinquent until the modifications were made permanent. Both agencies reported their highest delinquency rate in February 2010.

The serious delinquency rate is falling as Fannie and Freddie work through the backlog of loans and either modify the loan, foreclose, short sale, or the loan cures. The serious delinquency rate is still very high … but at least it is declining.

Click on graph for larger image.

Freddie Mac Reports, Fannie Mae Reports

 

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