GSE 90-Day Past Due Rate Exploded in Q4

Fannie Mae and Freddie Mac experienced a stunning 152% increase in loan delinquencies in the 90-days or more past due category, according to a new report by their regulator, the Federal Housing Finance Board. The late payment rate rose to 2.14% from 0.85%. Meanwhile, the agency's 'Foreclosure Prevention Report' shows the GSEs increased their assistance for troubled borrowers and suspended most foreclosures from November 26 into the first quarter of this year. The foreclosure suspensions caused 12,600 troubled loans to remain on the government sponsored enterprises' balance sheets in December — "increasing the 90-day plus delinquency rates," the GSE regulator said. Nevertheless, the two had 655,900 seriously delinquent loans on their books as of December 30, compared to 511,166 on October 31, a sequential increase of 28%. Fannie and Freddie completed 3,400 foreclosures in December, down substantially from 14,400 in November. Overall, they foreclosed on 34,845 properties in the fourth quarter, compared to 47,500 in the third quarter. Their real estate owned (REO) inventory declined 3% in the fourth quarter to 92,800.