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Re-Default Rate, by Investor (60 or More Days Delinquent)

First Quarter 2009

As noted in prior reports, modifications on loans held in the servicers' own portfolios continued to perform better than loans serviced for Fannie Mae, Freddie Mac, Ginnie Mae, or private investors.  This difference in re-default rates may be attributable to servicers having greater flexibility to modify terms on loans held in their portfolios to achieve greater affordability and sustainability.  These data do not reflect modifications made under the "Making Home Affordable" program, which began to be implemented after the end of this reporting period
Loans serviced for third parties represented more than 91 percent of all serviced loans.22

Ginnie Mae loans experienced better early performance, but represented only a small fraction of modified loans.

Re-Default Rates for Portfolio Loans and Loans Serviced for Others (60 or More Days Delinquent)23
 Three Months after ModificationSix Months after ModificationNine Months after Modification12 Months after Modification

Fannie Mae

29.4%

43.4%

50.1%

52.5%

Freddie Mac

23.0%

43.9%

47.1%

49.9%

Ginnie Mae

5.2%

31.6%

40.9%

41.9%

Private

33.3%

46.8%

52.7%

58.1%

Portfolio Loans

21.0%

34.6%

37.0%

39.7%

 60 or More Days Delinquent by Investor after Modification (Loans Modified in 2008) 

 22 Of the loans serviced for others that were modified during 2008, 5.0 percent were serviced for Freddie Mac, 10.5 percent were serviced for Fannie Mae, 0.9 percent were serviced for Ginnie Mae, and 83.7 percent were serviced for private investors.

 23 Data include only those modifications that have had sufficient time to age the indicated number of months.  Only modifications implemented during the first quarter 2008 have been in effect 12 months.  Only those modifications implemented in first and second quarter 2008 have been in effect at least nine months.  Only those modifications implemented in first, second, and third quarter 2008 have been in effect at least six months.  Loans modified throughout 2008 have all been in effect at least three months.


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