The GSEs, Freddie Mac and Fannie Mae, are using the the FHFA to tout their record of preventing foreclosures. They’ve got the name and clout to be able to make sure everyone listens no matter how hard we try to tune them out. Here’s what they have to say.
In the second quarter of 2014 they claim they prevented 80,000 foreclosures, bringing their total since the start of the crisis to 3.3 million. They accomplished most of this through permanent loan modifications.
I take issue with this for 2 reasons:
1) They don’t know that their applicants would have gone into foreclosure. Many many people were talked into loan mods that weren’t necessary.
2) This totally skews the real picture of the housing industry and I’ll explain why.
How many foreclosures have we prevented as a short sale industry? We’ve been out there since before day 1 connecting the right buyers with the right homes. We’ve made a huge impact and helped many homeowners avoid foreclosure.
But we don’t have the branding of Fannie or Freddie. We don’t have the united banner to stand under. So we’re largely disconnected. But that doesn’t make our contribution any less important. I think we should all keep on our way, let the GSEs make the headlines, while we make the money.