The performance of loan modifications completed by Fannie Mae servicers took a step up in the fourth quarter of 2009 as the government's HAMP program finally started to kick in.
New figures from the GSE show that 62% of modifications completed in the fourth quarter 2009 are still current after nine months, compared to 45% of loans modified in the third quarter of that year.
"Approximately 53% of loans modified during 2009 were current or had paid off as of nine months following the loan modification date," Fannie said in its third quarter financial report.
In other words, 47% of loans modified in 2009 have re-defaulted.
Analyzing modifications completed in the first quarter of 2010, Fannie said only 29% have re-defaulted after six months, compared to 53% in the third quarter of 2009.
As of September 30, the government sponsored enterprise had 321,800 proprietary modifications on its books and nearly 158,800 modifications that meet Home Affordable Modification Program specifications.
The GSE, however, does not breakout the performance of its proprietary modifications.
