2Q20 Highlights — Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

• The Enterprises completed 254,014 foreclosure prevention actions in the second quarter, bringing the total to 4,685,890 since the start of conservatorships in September 2008. Of these actions, 3,986,294 have helped troubled homeowners stay in their homes, including 2,420,846 permanent loan modifications.
• Initiated forbearance plans increased significantly to 1,511,787 in the second quarter from 170,533 in the first quarter due to the COVID-19 pandemic. The total number of loans in forbearance plans at the end of the quarter was 1,398,250, representing approximately 4.95% of the total loans serviced, and 90 percent of the total delinquent loans. 
  
• Nineteen percent of modifications in the second quarter were modifications with principal forbearance. Modifications with extend-term only accounted for 66 percent of all loan modifications during the quarter.
• There were 922 completed short sales and deeds-in-lieu during the quarter, bringing the total to 699,596 since the conservatorships began in September 2008.​
  
  

The Enterprises' Mortgage Performance:

• The 60+ days delinquency rate jumped from 0.92 percent at the end of the first quarter to 4.08 percent at the end of the second quarter, the highest rate since second of 2012.  The spike in delinquencies were as a result of the COVID-19 pandemic and the forbearance programs being offered to the affected borrowers. 
  
• The Enterprises' serious (90 days or more) delinquency rate rose to 2.58 percent at the end of the second quarter. This compared with 7.96 percent for Federal Housing Administration (FHA) loans, 3.98 percent for Veterans Affairs (VA) loans, and 4.26 percent for all loans (industry average).​
  
  

The Enterprises' Foreclosures:

• ​Foreclosure starts decreased to 74 percent to 7,551 while third-party and foreclosure sales dropped 87 percent to 1,028 in the second quarter due to the suspension of foreclosures.

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

Fannie Mae and Freddie Mac State Borrower Assistance Map​

2Q20 Highlights ​— Refinance Activities​​

• ​​Total refinance volume increased in June 2020 to levels last observed in 2013 as mortgage rates fell in previous months. Mortgage rates decreased further in June: the average interest rate on a 30-year fixed rate mortgage fell to 3.16 percent from 3.23 percent in May.
• In the Second Quarter 2020, 51 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 70.
  
• The percentage of cash-out refinances increased to 27 percent in June from 28 percent in May. Mortgage rates have continued to fall, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.