Reports suggest that Freddie Mac’s mortgage investment portfolio escalated by annualized 9.3% in the month of June. Delinquencies related to Freddie Mac guaranteed loans also increased remarkably. As of July 24th 2009, the portfolio escalated to USD$829.8 billion. In comparison it’s mortgage investment portfolio was USD$791.8 billion during the same period in June 2008.
Delinquencies contribute to the increase in the stress on the capital of the company. It escalated to 2.78% in June. Earlier it was 2.62% and 0.93% in the month of June 2008 and May 2008 respectively. There was a sharp drop in multifamily delinquency rate which nosedived by 0.01% to 0.11% in the month of June 2009. A year back, the figure recorded for the same parameter was 0.04%.
In the month of May, the refinance loan purchase volume was USD$40.3 billion. In June it was USD$50.9 billion. June 2009 was perhaps the month when the maximum number of refinances took place since 2003.
In order to improve borrower experience, Freddie Mac has outsourced some of the loan modification activities to a company called Home Retention Services Inc. This step has been taken to provide more room for borrowers who intend to get their mortgages modified.
Home Retention Services Inc will evaluate the “eligibility of delinquent borrowers” having mortgages backed by Freddie Mac under Obama’s Making Home Affordable Plan. Home Retention will process financial information of potential borrowers to judge their eligibility for loan modification.
The potentially qualifying borrowers identified by Freddie Mac servicer will get letters asking them to contact Home Retention Services Inc through toll free numbers. Adequate measures have been taken to protect borrowers from counterfeits. After the income assessment and other necessary paper work has been concluded, the documents are sent to the servicer for the final approval.
In case the borrower fails to get approved for the loan modification program under Making Home Affordable Plan, the borrowers are made aware of other options that they can avail.