[classicman]

I also found this which I think is an interesting read. I meant to post it earlier and forgot.

FROM 2007

While doing some research on delinquencies, I just happened to stumble across a recent release from Freddie Mac on delinquencies.
Following is a chart and it shows that delinquencies at Freddie Mac are falling dramatically:



That is pretty stunning. Freddie Mac says delinquencies are dropping, but everything else I can find shows delinquencies are rising dramatically. OK, Mish, what gives?

US mortgage defaults: it pays(sic) to read the footnotes

Essentially, Footnote No. 12 says that if Freddie Mac renegotiates the terms of the loan with someone who is delinquent, then, voila, that person is no longer delinquent. It seems to me that since about June of 2006, Freddie Mac is struggling to keep this Ponzi scheme afloat.

Fannie Mae has its own guidance on delinquencies:

“First and foremost, Fannie Mae tries to avoid foreclosure. There are no winners when a home mortgage is foreclosed. It is the least desirable way to resolve a problem loan, and a terrible ordeal for the homeowner. It also is costly for Fannie Mae, as the investor, and for the loan servicer.

“Homeowners who are having difficulties making their mortgage payments should immediately contact their mortgage loan servicer (the company to which they send their monthly payments) to discuss options.

“Fannie Mae has instructed its lenders and servicers to avoid foreclosure whenever possible by offering borrowers who get behind in their mortgage payments various alternatives, including temporary forbearance, loan modification, and preforeclosure sales.”

Mish Translation: Keep this stuff off the books as long as you can. Cross your fingers and toes with David Lereah and hope the bottom is in.

Link