FHFA: GSEs Complete 539,000 3Q Foreclosure Prevention Actions

The Federal Housing Finance Agency released its third quarter Foreclosure Prevention and Refinance Report, showing Fannie Mae and Freddie Mac completed 539,451 foreclosure prevention actions in quarter, bringing to 5.2 million the number of troubled homeowners who have been helped during conservatorships.

Of these actions, 4.5 million of the foreclosure prevention actions have helped troubled homeowners stay in their homes.

Other report highlights include:

–Forbearance: newly initiated forbearance dropped significantly to 231,000 in the third quarter from 1.5 million in the second quarter. Loans in forbearance plans at the end of the quarter totaled 1 million, representing 3.66 percent of the total loans serviced and 79 percent of total delinquent loans. A majority of the forbearance actions occurred as a result of the Enterprises’ response to COVID-19 impacts.

–Mortgage Performance: The 60+ days delinquency rate decreased from 4.08 percent at the end of the second quarter to 3.58 percent at the end of the third quarter. Overall, delinquency rates remained much higher than pre-coronavirus rates due to the forbearance programs being offered to borrowers affected by the pandemic.

–The Enterprises’ serious (90 days or more) delinquency rate jumped to 3.14 percent at the end of the third quarter. This compared with 10.76 percent for Federal Housing Administration loans, 5.77 percent for Veterans Affairs loans and 5.16 percent for all loans (industry average).

–Foreclosure starts decreased 10 percent from 7,551 in the second quarter to 6,809 in the third quarter.

–Refinances: increased to 1.8 million in the third quarter, from 1.5 in the second quarter.

–REO inventory decreased 25 percent in the third quarter.

Link to Report