More than 6.6 million troubled homeowners helped since conservatorships
The Federal Housing Finance Agency (FHFA) today released its third quarter 2022 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 69,362 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,660,364 since the start of conservatorships in September 2008.
The report also shows that 53 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 444,850 in the second quarter to 194,189 in the third quarter.
The Enterprises’ serious delinquency rate declined from 0.79 percent to 0.68 percent at the end of the third quarter. This compares with 4.26 percent for Federal Housing Administration (FHA) loans, 2.51 percent for Veterans Affairs (VA) loans, and 1.90 percent for all loans (industry average).
Other highlights from the report include:
- Forbearance: As of September 30, 2022, there were 78,432 loans in forbearance, representing approximately 0.25 percent of the Enterprises single-family conventional book of business, down from 90,889 or 0.29 percent at the end of the second quarter of 2022. Approximately 4 percent of these loans have been on a forbearance plan for more than 12 months.
- Mortgage Performance: The 60+ days delinquency rate dropped from 0.92 percent at the end of the second quarter to 0.83 percent at the end of the third quarter of 2022. The delinquency rates remained slightly 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 17,327 while third-party and foreclosure sales increased 3 percent to 3,566 in the third quarter.
- Real Estate Owned (REO) Activity & Inventory: The Enterprises’ REO inventory increased 10 percent from 9,341 in the second quarter to 10,251 in the third quarter of 2022, as REO acquisitions outpaced property dispositions. The total number of property acquisitions increased 23 percent to 1,880, while dispositions decreased to 993 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.