In a report to Congress from the Federal Housing Finance Agency (FHFA) today, Freddie and Fannie appear to have had a late 2008 fourth quarter surge in loan modifications – as much as 76 percent. “Section 110 of the Emergency Economic Stabilization Act of 2008 (EESA) directs Federal Property Managers to develop and implement plans to maximize assistance for homeowners and encourage servicers of underlying mortgages to take advantage of programs to minimize foreclosures.” Source

The GSE’s suspension of the majority of foreclosures scheduled for December 2008 (announced in November 2008) appears to have given the servicers the time they needed to work with borrowers via the Streamlined Modification Program (SMP). In a letter to Chris Dodd, Chairman of the Committee on Banking, Housing,and Urban Affairs, Mr. Lockhart, (Director of Federal Housing Finance Agency & Chairman of the FHFA Oversight Board), mentions the prevention of foreclosures via loan modification is a top priority for the agency, and the report details efforts to help 4 to 5 million homeowners with mortgages owned by Fannie Mae or Freddie Mac.
Letter and FHFA Federal Property Managers Report

I love to learn something new and I found the REO Rental Initiative interesting. This program gives “qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis.”