Foreclosure Prevention, Refinance, and Federal Property Manager's Report - May 2023

May​ 2023 Highlights - Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:​

• The Enterprises completed 16,191 foreclosure prevention actions in May, bringing the total to 6,803,424 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
• There were 5,152 permanent loan modifications in May, bringing the total to 2,650,244 since the conservatorships began in September 2008.
• Approximately 77 percent of loan modifications in May involved extend term only. Modifications with principal forbearance accounted for 19 percent of all loan modifications during the month.
• The number of borrowers who received payment deferrals after completing a COVID- 19 related forbearance plan decreased 13 percent from 7,510 in April to 6,517 in May 2023.
• ​Initiated forbearance plans increased from 9,220 in April to 9,821 in May 2023. However, the total number of loans in forbearance decreased from 61,317 at the end of April to 57,858 at the end of May, representing approximately 0.19 percent of the total loans serviced and 12 percent of the total delinquent loans.

The Enterprises' Mortgage Performance: 

• The 30-59 days delinquency rate decreased to 0.80 percent while the serious delinquency rate declined to 0.57 percent at the end of May.

The Enterprises' Foreclosures:​

• Third-party and foreclosure sales increased 7 percent to 1,270 while foreclosure starts increased 9 percent to 6,125 in May.

May ​2023 Highlights - Refinance Activities

• Total refinance volume increased in May 2023 as mortgage rates fell in April. Mortgage rates rose in May: the average interest rate on a 30-year fixed rate mortgage increased to 6.43 percent from an April level of 6.34 percent.
• The percentage of borrowers refinancing into shorter term 15-year mortgages decreased to 12 percent in May. The average interest rate savings of a 15-year mortgage over a 30-year mortgage has been higher in 2021 through 2023 compared to previous years. However, over this period, the higher monthly cost of a 15-year mortgage compared to the greater affordability of a 30-year mortgage has limited ​​borrower interest in the 15-year mortgage due to increased mortgage rates.