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Foreclosure Prevention, Refinance, and FPM Report

Foreclosure Prevention Refinance and FPM Report Fourth Quarter 2020

Published: 3/25/2021

4Q20 Highlights — Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

  • The Enterprises completed 362,912 foreclosure prevention actions in the fourth quarter, bringing the total to 5,588,253 since the start of conservatorships in September 2008. Of these actions, 4,886,910 have helped troubled homeowners stay in their homes, including 2,440,966 permanent loan modifications.
  • Initiated forbearance plans dropped to 179,644 in the fourth quarter from 230,714 in the third quarter. The total number of loans in forbearance plans at the end of the quarter was 804,559, representing approximately 2.8% of the total loans serviced, and 69 percent of the total delinquent loans.
  • Fourteen percent of modifications in the fourth quarter were modifications with principal forbearance. Modifications with extend-term only accounted for 70 percent of all loan modifications during the quarter.
  • There were 823 completed short sales and deeds-in-lieu during the quarter, bringing the total to 701,343 since the conservatorships began in September 2008.

The Enterprises' Mortgage Performance:

  • The 60+ days delinquency rate decreased from 3.58 percent at the end of the third quarter to 3.07 percent at the end of the fourth 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 2.78 percent at the end of the fourth quarter. This compared with 11.19 percent for Federal Housing Administration (FHA) loans, 5.96 percent for Veterans Affairs (VA) loans, and 5.03 percent for all loans (industry average).

The Enterprises' Foreclosures:

  • ​Foreclosure starts decreased 7 percent to 6,302 while third-party and foreclosure sales increased 8 percent to 1,933 in the fourth quarter.

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

Fannie Mae and Freddie Mac State Borrower Assistance Map

4Q20 Highlights ​— Refinance Activities​​

  • ​​Total refinance volume fell but continued in record breaking territory in December 2020 as mortgage rates continued to decrease through November. Mortgage rates decreased further in December: the average interest rate on a 30-year fixed rate mortgage fell to 2.68 percent from 2.77 percent in November.
  • In the fourth quarter, 35 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 140.
  • The percentage of cash-out refinances increased to 28 percent in December from 26 percent in November, remaining below the levels observed in the previous few years. Mortgage rates have continued to fall, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.

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