Section 1: Mortgage Performance |
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Total Loans Serviced: |
Total conventional active book of business, excluding loans that were liquidated during the month. |
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Current and Performing: |
Loans that are making timely payments and are 0 months delinquent as of the reporting month. |
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Total Delinquent Loans: |
Loans that are at least one payment past
due, i.e., total servicing minus current and performing. |
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30-59 Days Delinquent: |
Includes loans that are only one payment
delinquent. |
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60-89 Days Delinquent: |
Includes loans that are only two payments
delinquent. |
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60-plus-days Delinquent: |
Loans that are two or more payments
delinquent, including loans in relief, in the process of foreclosure, or
in the process of bankruptcy, i.e., total servicing minus current and
performing, and 30 to 59 days delinquent loans. Our calculation may
exclude loans in bankruptcy process that are less than 60 days
delinquent. |
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Serious Delinquency: |
All loans in the process of foreclosure plus
loans that are three or more payments delinquent (including loans in
the process of bankruptcy). |
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In Bankruptcy: |
Loans in the process of bankruptcy; includes all delinquency status. |
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Section 2: Completed Foreclosure Prevention Actions |
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Home Retention Actions: |
Repayment plans, forbearance plans,
charge-offs in lieu of foreclosure, Home Saver Advances, and loan
modifications. Home retention actions allow borrowers to retain
ownership/occupancy of their homes while attempting to return loans
to current and performing status. |
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Repayment Plans: |
An agreement between the servicer and a
borrower that gives the borrower a defined period of time to
reinstate the mortgage by paying normal regular payments plus an
additional agreed upon amount in repayment of the delinquency. |
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Forbearance Plans: |
An agreement between the servicer and the
borrower (or estate) to reduce or suspend monthly payments for a
defined period of time after which borrower resumes regular monthly
payments and pays additional money toward the delinquency to bring
the account current or works with the servicer to identify a
permanent solution, such as loan modification or short sale, to
address the deliquency. |
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Charge-offs in Lieu of Foreclosure: |
A delinquent loan for which
collection efforts or legal actions against the borrower are agreed to
be not in the Enterprises' best interests (because of reduced property
value, a low outstanding mortgage balance, or presence of certain
environmental hazards). The servicer charges off the mortgage debt
rather than completing foreclosure and taking the property title. The
borrower retains the property. The unpaid mortgage balance becomes
a lien on the borrower’s property, which must be satisfied when the
borrower transfers ownership. |
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Home Saver Advance (Fannie Mae): |
An unsecured personal loan to a
qualified borrower to cure his or her payment defaults under a
mortgage loan the Enterprises own or guarantee.
The borrower must be able to resume regular monthly payments on
his or her mortgage. |
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Loan Modifications: |
Number of modified, renegotiated, or
restructured loans, regardless of performance-to-date under the plan
during the month. Terms of the contract between the borrower and
the lender are altered with the aim of curing the delinquency (30 days
or more past due). |
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Nonforeclosure Home Forfeiture Actions: |
Short sales and deeds in
lieu of foreclosure. These actions require borrowers to give up their homes. Although homes are forfeited, foreclosure alternatives
generally have less adverse impact on borrowers and their credit
reports than foreclosure. |
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Short Sales: |
A short sale (also called a preforeclosure sale) is the
sale of a mortgaged property at a price that nets less than the total
amount due on the mortgage (e.g., the sum of the unpaid principal
balance, accrued interest, advanced escrows, late fees, and
delinquency charges.) The servicer and borrower negotiate payment of the difference between the net sales price and the total amount
due on the mortgage. |
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Deed(s) in Lieu of Foreclosure: |
A loan for which the borrower
voluntarily conveys the property to the lender to avoid a foreclosure
proceeding. |
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Section 3: Loan Modifications |
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Increase: |
Principal and interest after modification is higher than
before the modification. |
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No Increase: |
Original principal and interest is unchanged after the
modifications. |
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Decrease <=20%: |
Original principal and interest is decreased by 20
percent or less after modification. |
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Decrease >20%: |
Original principal and interest is decreased by more
than 20 percent after modification. |
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Extend Term Only: |
Remaining term of the loan is longer after
modification. |
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Reduce Rate Only: |
Loan's rate is lower after modification. |
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Extend Term and Reduce Rate: |
Loan's rate reduced and term
extended. |
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Extend Term, Rate Reduction, and Forbear Principal: |
Modification
includes term extension, rate reduction, and forbearance of
principal. |
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Other: |
A modification that does not fit in any of the above categories. The majority of these loans are capitalized modifications. |
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Section 4: Third-party Sales and Foreclosures |
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Third-party Sales: |
A third party entity purchases the property at the
foreclosure sale/auction above the initial bid set forth by Fannie Mae
or Freddie Mac. |
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Foreclosure Starts: |
The total number of loans referred to an
attorney to initiate the legal process of foreclosure during the month.
These are loans measured as not being in foreclosure in the previous
month but referred to foreclosure in the current month. |
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Foreclosure Sales: |
The number of loans that went to foreclosure
(sheriff's) sale during the month. |
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