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55 » VISIT US ONLINE @ DSNEWS.COM MORTGAGE LOANS NOT YET PERFORMING AT PRE-CRISIS LEVELS e Urban Institute December Housing Chartbook brought some welcome news for mortgage delinquency and foreclosure rates. Similar to the latest reports from CoreLogic and ATTOM Data Solutions, the Chartbook found that these levels are still dropping after the unprecedented levels seen following the housing crisis. Despite this positive trend, Urban Institute reported that these rates are still relatively high compared to those prior to the crisis in the early 2000s. "Loans 90 days delinquent or in foreclosure totaled 3.0 percent in the third quarter of 2016," said the report, "down from 3.6 percent for the same quarter a year earlier." In addition to the nationwide rates, seriously delinquent rates for GSE loans also declined. e Chartbook noted that as of October 2016, 1.21 percent of the Fannie Mae portfolio and 1.03 percent of the Freddie Mac portfolio were seriously delinquent. is was a decrease from 1.58 percent for Fannie Mae and 1.38 percent for Freddie Mac from the year prior, according to the report. Alongside the decline in GSE seriously delinquent loans, FHA and VA loans also decreased even further, according to the Chartbook. "GSE delinquencies remain higher relative to 2005-2007, while FHA and VA delinquencies (which are higher than their GSE counterparts) are now at levels lower than 2005-2007," said the Urban Institute. With the decline in delinquencies also came a decline in permanent loan modifications. Broken down even further, the data from the Chartbook showed that the number of active permanent modifications declined by 4,870. "Fewer new permanent modifications were made, some modifications failed because the borrowers did not make their payments, and a small number of borrowers either paid off their mortgage or withdrew their application," said the report. "As a result, active permanent mods declined to 0.97 million." CSP IMPLEMENTATION REACHES MILESTONE, TIMELINE FOR RELEASE 2 COMING IN Q1 In December, Freddie Mac reached a "significant milestone" toward the goal of a common securitization platform and a Single Security with the implementation of Release 1, the first use of Common Securitization Platform (CSP) software and the implementation of CSP's core infrastructure and operations, according to FHFA Director Mel Watt. e FHFA, conservator for both Freddie Mac and Fannie Mae, has outlined the next steps toward implementing the Single Security on the CSP—which the agency expects to do sometime in 2018—in the 2017 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions (CSS). "e 2017 Scorecard will guide Fannie Mae, Freddie Mac, and Common Securitization Solutions as they continue to build on the progress that has been made over the years in meeting the goals set forth in our Conservatorship Strategic Plan," Watt said. "e goals and initiatives contemplated in the Scorecard strike what we believe is an appropriate balance between ensuring that these entities operate in a safe and sound manner while continuing to ensure that the housing finance market remains liquid and supports housing access for homeowners and renters." FHFA noted in the scorecard that "e Common Securitization Platform and Single Security are significant, multiyear initiatives, and FHFA expects these interrelated projects to remain ongoing conservatorship priorities." e performance goals for 2017 for CSS and the GSEs are to continue working with FHFA and each other to build and test the CSP and then to successfully integrate the GSEs with the CSP. e ultimate goal is to implement the Single Security on the CSP for both Fannie Mae and Freddie Mac, according to the FHFA. CSS and the GSEs, in developing the CSP, are charged with focusing on functions necessary for current GSE single-family securitization activities and including the development of operational and system capabilities CSP needs to facilitate the issuance and administration of a Single Security for the GSEs, according to the scorecard. Another goal for CSS and the GSEs for 2017 is to continue to work with each other "to obtain and utilize input from the Single Security/ CSP Industry Advisory Group," the scorecard reported. With the launch of Release 1 last November, FHFA expects to announce a timeframe for Release 2 in the first quarter of 2017. Watt stated, "FHFA has developed a timeline of key achievements to date and will update the timeline as milestones are reached. We remain committed to building the CSP in a transparent manner."

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