Foreclosure Prevention, Refinance, and FPM Report - 1Q2023

Published: 06/23/2023

1Q23 Highlights — Foreclosure Prevention

The Enterprises completed 58,268 foreclosure prevention actions in the first quarter of 2023, bringing the total to 6,771,101 since the start of conservatorships in September 2008. Of these actions, 6,066,666 have helped troubled homeowners stay in their homes, including 2,640,651 permanent loan modifications.
Initiated forbearance plans decreased to 34,749 in the first quarter of 2023 from 47,608 in the fourth quarter of 2022. The total number of loans in forbearance at the end of the quarter was 65,757, representing approximately 0.21 percent of the total loans serviced, and 15 percent of the total delinquent loans.
Sixteen percent of modifications in the first quarter were modifications with principal forbearance. Modifications that include extend-term only accounted for 73 percent of all loan modifications during the quarter.
There were 148 completed short sales and deeds-in-lieu during the quarter, bringing the total to 704,435 since the conservatorships began in September 2008.

The 60+ days delinquency rate decreased from 0.84 percent at the end of the fourth quarter of 2022 to 0.75 percent at the end of the first quarter of 2023, the lowest level since the pandemic.
The Enterprises' serious (90 days or more) delinquency rate fell to 0.60 percent at the end of the first quarter. This compared with 4.01 percent for Federal Housing Administration (FHA) loans, 2.26 percent for Veterans Affairs (VA) loans, and 1.73 percent for all loans (industry average).

Foreclosure starts increased 6 percent to 19,809 while third-party and foreclosure sales rose 12 percent to 3,700 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

Although down overall for the quarter, total refinance volume increased in March 2023 as mortgage rates continued to decrease through February from the October peak of 6.90 percent. Mortgage rates rose in March: the average interest rate on a 30-year fixed rate mortgage increased to 6.54 percent from a February level of 6.26 percent.
The percentage of borrowers refinancing into shorter term 15-year mortgages increased to 14 percent in March. The average interest rate savings of a 15-year mortgage over a 30-year mortgage has been higher in 2022 and 2023 compared to previous years.