Fannie Mae Leads in Mods
Washington-By going outside the box, Fannie Mae is modifying more loans than Freddie Mac and achieving larger reductions in borrowers' monthly payments.
Fannie made an effort to move borrowers who don't qualify for the government's Home Affordable Modification Program into alternative modification plans.
Not counting HAMP modifications, Fannie completed 27,700 loan modifications in the third quarter, up 66% from the second quarter.
Freddie completed only 9,000 alternative modifications in the third quarter, a 42% decline from the previous quarter.
"Freddie has instructed its servicers to fully support HAMP as the primary modification program," the GSE regulator says in its quarterly Foreclosure Prevention and Refinance Report.
Meanwhile, Fannie reduced the monthly payments for its borrowers by more than 20% in 56% of the modifications, a slight increase from the second quarter.