More than 6.5 million troubled homeowners helped since conservatorship
The Federal Housing Finance Agency (FHFA) today released its second quarter 2022 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 96,945 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,591,002 since the start of conservatorships in September 2008.
The report also shows that 72 percent of loan modifications completed in the second quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances decreased significantly amid rising mortgage rates from 899,518 in the first quarter to 444,852 in the second quarter.
The Enterprises’ serious delinquency rate declined from 0.97 percent to 0.79 percent at the end of the second quarter. This compares with 4.64 percent for Federal Housing Administration (FHA) loans, 2.83 percent for Veterans Affairs (VA) loans, and 2.12 percent for all loans (industry average).
Other highlights from the report include:
- Forbearance: As of June 30, 2022, there were 90,889 loans in forbearance, representing approximately 0.29 percent of the Enterprises single-family conventional book of business, down from 126,758 or 0.41 percent at the end of the first quarter of 2022. About 9 percent of these loans have been on the plan for more than 12 months.
- Mortgage Performance: The 60+ days delinquency rate dropped from 1.11 percent at the end of the first quarter to 0.92 percent at the end of the second quarter of 2022. The delinquency rates remained higher than pre-coronavirus rates due to the forbearance programs offered to borrowers affected by the pandemic.
- Foreclosures: The number of foreclosure starts decreased to 19,388 while third-party and foreclosure sales increased 13 percent to 3,458 in the second quarter.
- Real Estate Owned (REO) Activity & Inventory: The Enterprises’ REO inventory increased 3 percent from 9,048 in the first quarter to 9,341 in the second quarter of 2022, as REO acquisitions outpaced property dispositions. The total number of property acquisitions increased 3 percent to 1,523, while dispositions decreased slightly to 1,239 during the quarter.
FHFA’s quarterly foreclosure prevention and refinance reports include data on the Enterprises’ mortgage performance, delinquencies, and active forbearance plans, as well as forfeiture actions and refinances by state. The data included in these reports are also available on FHFA’s website as an interactive Borrower Assistance Map.