Fannie, Freddie foreclosure starts spike

Prevention efforts grow at slower pace

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A new report shows foreclosure starts among the 30.4 million first-lien residential mortgages owned or guaranteed by Fannie Mae and Freddie Mac — most of them prime loans — jumped 63 percent during the first three months of the year, to 243,800.

The sharp increase in the number of homes entering the foreclosure process compared to the previous quarter outpaced the 20 percent increase in foreclosure prevention actions by Fannie and Freddie’s 3,000 loan servicers. Those actions, including loan modifications, forebearance and repayment plans, and short sales, totalled 87,000.