​July 2021 Highlights — Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

• The Enterprises completed 61,494 foreclosure prevention actions in July, bringing the total to 6,091,413 since the start of the conservatorships in September 2008. Approximately 41 percent of these actions have been permanent loan modifications.
• There were 6,287 permanent loan modifications in July, bringing the total to 2,474,821 since the conservatorships began in September 2008.
• Ten percent of modifications in July were modifications with principal forbearance. Modifications with extend-term only accounted for 66 percent of all loan modifications during the month.
• The number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan decreased 5 percent from 41,789 in June to 39,836 in July.
• Initiated forbearance plans decreased 5 percent from 24,841 in June to 23,481 in July. The total number of loans in forbearance also decreased from 490,508 at the end of June to 438,550 at the end of July, representing approximately 1.5% of the total loans serviced, and 55 percent of the total delinquent loans.
  

The Enterprises' Mortgage Performance:

• The 30-59 days delinquency rate decreased slightly to 0.68 percent, while the serious delinquency rate declined to 1.86 percent at the end of July.
  

The Enterprises' Foreclosures:

• Third-party and foreclosure sales increased 5 percent to 796 while foreclosure starts dropped 10 percent to 1,813 in July.

July 2021 Highlights — Refinance Activities

• Total refinance volume decreased in July 2021, after mortgage rates fell in June but remained above the lows observed in 2020. Mortgage rates fell in July: the average interest rate on a 30-year fixed rate mortgage fell to 2.87 percent from 2.98 percent in June.
• In July, 3 refinances were completed through the High LTV Refinance Option, bringing total refinances through the High LTV Refinance Option from the inception of the program to 200.
• The percentage of borrowers refinancing into shorter term 15-year fixed rate mortgages continued at 28 percent in July as the difference between 15- and 30-year fixed rate mortgages steadily increased from the lows observed in late 2020, to 71 basis points in June.