Loan mods are up, for what that’s worth

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When foreclosure activity slowed toward the end of last year, loan modifications increased, according to theFederal Housing Finance Agency, which oversees the huge government-controlledmortgage buyers Fannie Mae and Freddie Mac. The agency said that Fannie and Freddie modified the terms of nearly 24,000 loans during the fourth quarter of 2008. That was a 76% increase over the third quarter, according to James B. Lockhart, director of the agency.

The figures were contained in a quarterly report on foreclosure prevention by Lockhart’s agency. You can read the full report here.

Lockhart also said that the number of foreclosures during the quarter fell by nearly 27%. But he noted that various federal and state moratoriums on repossessing homes played a big role in that statistic. Those moratoriums are now expiring, causing foreclosures to shoot sharply higher once again.

-- E. Scott Reckard