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Foreclosure Prevention, Refinance, and FPM Report

Foreclosure Prevention Refinance and FPM Report Third Quarter 2020

Published: 12/17/2020

3Q20 Highlights — Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

  • The Enterprises completed 539,451 foreclosure prevention actions in the third quarter, bringing the total to 5,225,341 since the start of conservatorships in September 2008. Of these actions, 4,524,821 have helped troubled homeowners stay in their homes, including 2,431,619 permanent loan modifications.
  • Initiated forbearance plans dropped significantly to 230,714 in the third quarter from 1,511,787 in the second quarter. The total number of loans in forbearance plans at the end of the quarter was 1,045,808, representing approximately 3.66% of the total loans serviced, and 79 percent of the total delinquent loans. 
  • Twenty percent of modifications in the third quarter were modifications with principal forbearance. Modifications with extend-term only accounted for 64 percent of all loan modifications during the quarter.
  • There were 924 completed short sales and deeds-in-lieu during the quarter, bringing the total to 700,520 since the conservatorships began in September 2008.​

The Enterprises' Mortgage Performance:

  • The 60+ days delinquency rate decreased from 4.08 percent at the end of the second quarter to 3.58 percent at the end of the third 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 jumped to 3.14 percent at the end of the third quarter. This compared with 10.76 percent for Federal Housing Administration (FHA) loans, 5.77 percent for Veterans Affairs (VA) loans, and 5.16 percent for all loans (industry average).​

The Enterprises' Foreclosures:

  • ​Foreclosure starts decreased 10 percent to 6,809 while third-party and foreclosure sales increased 75 percent to 1,794 in the third quarter.

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

Fannie Mae and Freddie Mac State Borrower Assistance Map

3Q20 Highlights ​— Refinance Activities​​

  • ​​Total refinance volume fell in September 2020 but remained in record level territory as mortgage rates continued to decrease through August. Mortgage rates decreased further in September: the average interest rate on a 30-year fixed rate mortgage fell to 2.89 percent from 2.94 percent in August.
  • In the third quarter of 2020, 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 105.
  • The percentage of cash-out refinances increased to 25 percent in September from 24 percent in August, after steadily decreasing in previous months. 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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