Although the roles Fannie Mae and Freddie Mac play in the mortgage industry are expected to change dramatically in the near future, the government-sponsored enterprises still helped a number of distressed borrowers avoid foreclosure in the second quarter.
During the three-month period, Fannie and Freddie completed an estimated 129,000 mortgage modifications, bringing the total for first half of 2012 to 275,100, according to a report from the Federal Housing Finance Agency.
"The enterprises' delinquent loan count has declined by 11 percent year-to-date, however in certain states the number of loans that have been delinquent for one year or more has increased substantially over the past six months," the FHFA said.
Nearly half of the borrowers who received a modification during the second quarter saw a reduction in their monthly mortgage payments, while roughly 30 percent were granted some level of principal forbearance.
As a result, mortgage records indicate delinquency among borrowers with loans backed by Fannie and Freddie declined significantly on a quarter-over-quarter basis. With interest rates hovering near all-time lows, the number of households saddled with mortgages they can't afford may fall considerably, further reducing the number of borrowers requiring assistance in the future.