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Foreclosure Prevention, Refinance, and FPM Report

Foreclosure Prevention, Refinance, and Federal Property Manager's Report - August 2022

Published: 11/10/2022

August 2022 Highlights - Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:​

  • The Enterprises completed 24,603 foreclosure prevention actions in August, bringing the total to 6,639,479 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
  • There were 9,090 permanent loan modifications in August, bringing the total to 2,601,031 since the conservatorships began in September 2008.
  • Approximately 58 percent of loan modifications in August include "reduce rate" and "extend-term". Modifications with principal forbearance accounted for 11 percent of all loan modifications during the month.
  • The number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan increased 2 percent from 10,631 in July to 10,856 in August.
  • ​Initiated forbearance plans increased from 13,453 in July to 14,664 in August. The total number of loans in forbearance decreased from 84,385 at the end of July to 80,494 at the end of August, representing approximately 0.26 percent of the total loans serviced, and 16 percent of the total delinquent loans.

The Enterprises' Mortgage Performance: 

  • The 30-59 day delinquency rate decreased to 0.76 percent while the serious delinquency rate declined to 0.71 percent at the end of August.

The Enterprises' Foreclosures:​

  • Third-party and foreclosure sales decreased slightly to 1,165 while foreclosure starts increased 15 percent to 6,248 in August.

August 2022 Highlights - Refinance Activities

  • Total refinance volume decreased in August 2022 amid higher mortgage rates through July. Mortgage rates fell in August: the average interest rate on a 30-year fixed rate mortgage decreased to 5.22 percent from a July level of 5.41 percent.
  • The percentage of borrowers refinancing into shorter term 15-year fixed rate mortgages decreased to 14 percent in August as the difference between 15- and 30-year fixed rate mortgages decreased to 0.80 percent in July. While the interest rate savings of a 15-year fixed mortgage over a 30-year mortgage has been higher in 2022 compared to previous years, a sharp rise in mortgage rates since December has acted as an additional disincentive against the higher monthly cost of a 15-year fixed rate mortgage compared to the greater monthly affordability of 30-year fixed rate mortgage.

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