Fannie Mae has reported a decline in the number of delinquent home mortgages. There are a few factors that have helped this number, including more refined foreclosure prevention programs by the government and banks.

“It’s a good sign for Fannie Mae,” said Kurt Eggert, a professor of law at Chapman University who specializes in consumer credit issues. The good news, Mr. Eggert noted, extends to taxpayers, who have plowed more than $87 billion into Fannie since the government took the company into conservatorship in September 2008.

Still, Mr. Eggert said, “seeing the rate decline from excruciatingly high to painfully high is not all that comforting to me.”

And it could go up again. Freddie Mac, Fannie’s smaller housing finance cousin, recently reported that its delinquency rate jumped in October when Bank of America and other lending giants temporarily halted foreclosures. Fewer foreclosures meant more loans got stuck in the purgatory known as “seriously delinquent.”

But most lenders have resumed foreclosures, and last week Fannie Mae lifted its moratorium on evicting homeowners who were living in foreclosed properties. Delinquencies should decline accordingly… continue reading

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