​​​​​​​​1Q21 Highlights — Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

• The Enterprises completed 224,646 foreclosure prevention actions in the first quarter, bringing the total to 5,812,899 since the start of conservatorships in September 2008. Of these actions, 5,110,843 have helped troubled homeowners stay in their homes, including 2,452,400 permanent loan modifications.
  

• Initiated forbearance plans dropped to 121,216 in the first quarter of 2021 from 179,644 in the fourth quarter of 2020. The total number of loans in forbearance plans at the end of the quarter was 660,039, representing approximately 2.2% of the total loans serviced, and 67 percent of the total delinquent loans. 
  

• Eleven percent of modifications in the first quarter were modifications with principal forbearance. Modifications with extend-term only accounted for 65 percent of all loan modifications during the quarter. ​

• There were 713 completed short sales and deeds-in-lieu during the quarter, bringing the total to 702,056 since the conservatorships began in September 2008.​

The Enterprises' Mortgage Performance:

• The 60+ days delinquency rate dropped from 3.07 percent at the end of the fourth quarter to 2.68 percent at the end of the first quarter. The 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 decreased to 2.48 percent at the end of the first quarter. This compared with 11.00 percent for Federal Housing Administration (FHA) loans, 5.59 percent for Veterans Affairs (VA) loans, and 4.70 percent for all loans (industry average).

The Enterprises' Foreclosures:

• ​Foreclosure starts rose 45 percent to 9,125 while third-party and foreclosure sales increased 9 percent to 2,099 in the first quarter.

​For an interactive online map that provides state data, click on the following link: 

Fannie Mae and Freddie Mac State Borrower Assistance Map​

1Q21 Highlights ​— Refinance Activities​​

• Total refinance volume increased in March 2021, as borrowers sought to take advantage of historic low mortgage rates that began rising in January. Mortgage rates continued to rise in March: the average interest rate on a 30-year fixed rate mortgage rose to 3.08 percent from 2.81 percent in February.
  

• In the first quarter, 38 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 178.
  

• The percentage of cash-out refinances increased to 29 percent in March, remaining below the levels observed in the previous few years. Historic low mortgage rates have created more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.

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