OCC: Types of Modifications, by Investor

Types of Modifications, by Investor

First Quarter 2009

The types of modifications implemented in the first quarter of 2009 varied significantly among investors with the majority of all modifications going to loans held by the reporting servicers or private investors. Servicers report that Fannie Mae, Freddie Mac, and Ginnie Mae were in the process of revising their programs to work with troubled borrowers during the first quarter, including new modification guidelines.

The following tables show the distribution of the types of modification actions by investor. Because modifications may change more than one term, the number of features changed exceeds the number of modified loans for each investor.

Numbers of Each Type of Modification by Investor in the First Quarter of 2009
	Fannie Mae	Freddie Mac	Ginnie Mae	Portfolio¹⁶	Private Investor	Total
Total Mortgages Modified	13,412	11,852	80	57,733	102,079	185,156
Capitalization	10,435	10,383	77	28,936	80,098	129,929
Rate Reduction	6,789	7,266	63	34,426	68,523	117,067
Rate Freeze	307	598	0	7,219	15,222	23,346
Term Extension	6,816	7,257	14	28,399	4,002	46,488
Principal Reduction	0	1	0	3394	3	3,398
Principal Deferral	8	0	0	1,858	113	1,979
Unknown	2,831	1,426	3	6,281	2,421	12,962

The percentage of each type of change varied greatly by investor. Modifications made to Fannie Mae and Freddie Mac mortgages and mortgages held on servicers' books featured term extensions much more often than modifications overall. Modifications on Fannie Mae, Freddie Mac, and private investor mortgages capitalized missed fees and payments more often than modifications overall, while modifications on mortgages held on the books of servicers capitalized missed payments and fees much less frequently.

Percentage of Each Type of Modification by Investor in the First Quarter of 2009
	Fannie Mae	Freddie Mac	Ginnie Mae	Portfolio	Private Investor	Overall
Capitalization	77.8%	87.6%	96.3%	50.1%	78.5%	70.2%
Rate Reduction	50.6%	61.3%	78.8%	59.6%	67.1%	63.2%
Rate Freeze	2.3%	5.0%	0.0%	12.5%	14.9%	12.6%
Term Extension	50.8%	61.2%	17.5%	49.2%	3.9%	25.1%
Principal Reduction	0.0%	0.0%	0.0%	5.9%	0.0%	1.8%
Principal Deferral	0.1%	0.0%	0.0%	3.2%	0.1%	1.1%
Unknown	21.1%	12.0%	3.8%	10.9%	2.4%	7.0%

¹⁶ Portfolio loans are those loans held by the reporting servicer.

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Types of Modifications, by Investor

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