Regulator Not Happy With GSE Loan Mod Efforts

GSE regulator James Lockhart is not impressed with Fannie Mae and Freddie Mac's loss mitigation efforts -- but he anticipates that will change now that both are in conservatorships under his watchful eye. "Now that they are in conservatorship, their activities will increase significantly," the Federal Housing Finance Agency director told the Senate Banking Committee. An FHFA report shows the loan modifications by the government sponsored enterprises dropped by 20% from the first quarter to the second quarter while foreclosures rose 20%. In the second quarter, the GSEs modified 4,126 loans a month, compared to 5,204 loans a month during the first quarter. On average, the two completed 12,729 foreclosures a month during the second quarter, up from 10,511 a month during the first quarter.