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Fannie, Freddie Completing Fewer Mortgage Modifications This Year

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FANNIE MAE AND FREDDIE MAC

WASHINGTON - The number of loan modifications and mortgage repayment plans completed by Fannie Mae and Freddie Mac declined in the first quarter of 2011 as fewer borrowers were eligible for help, their federal regulator said on Monday.

The mortgage buyers' foreclosure prevention actions, which also include completing sales of homes below market value, fell to 171,531 from 208,416 in the previous quarter.

Many borrowers in the pipeline for aid are now severely delinquent and therefore do not qualify.

The Obama administration has been trying to keep struggling Americans in their homes through various taxpayer funded programs. The programs have done little to help the housing sector recover.

Fannie and Freddie, which were taken over by the government in September 2008 during the financial crisis, buy up mortgages from lenders and either hold the loans in their portfolios or repackage them as securities.

(Reporting by Rachelle Younglai; Editing by Andrew Hay)

Copyright 2011 Thomson Reuters. Click for Restrictions.

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