Foreclosure Prevention, Refinance, and FPM Report - 2Q2023

Published: 09/21/2023

2Q23 Highlights — Foreclosure Prevention

The Enterprises completed 47,370 foreclosure prevention actions in the second quarter of 2023, bringing the total to 6,818,471 since the start of conservatorships in September 2008. Of these actions, 6,113,843 have helped troubled homeowners stay in their homes, including 2,655,071 permanent loan modifications.
Initiated forbearance plans decreased to 27,738 in the second quarter from 34,749 in the first quarter of 2023. The total number of loans in forbearance at the end of the quarter was 54,109, representing approximately 0.17 percent of the total loans serviced, and 11 percent of the total delinquent loans.
Nineteen percent of modifications in the second quarter were modifications with principal forbearance. Modifications that include extend-term only accounted for 77 percent of all loan modifications during the quarter.
There were 193 completed short sales and deeds-in-lieu during the quarter, bringing the total to 704,628 since the conservatorships began in September 2008.

The 60+ days delinquency rate decreased from 0.75 percent at the end of the first quarter to 0.72 percent at the end of the second quarter of 2023, the lowest level since the pandemic.
The Enterprises' serious (90 days or more) delinquency rate fell to 0.55 percent at the end of the second quarter. This compared with 3.71 percent for Federal Housing Administration (FHA) loans, 2.15 percent for Veterans Affairs (VA) loans, and 1.61 percent for all loans (industry average).

Foreclosure starts decreased 10 percent to 17,919 while third-party and foreclosure sales increased 2 percent to 3,783 in the second 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 muted for the overall quarter, total refinance volume increased in June 2023 as mortgage rates increased in May but remained below the October peak of 6.90 percent. Mortgage rates rose in June: the average interest rate on a 30-year fixed rate mortgage increased to 6.71 percent from a May level of 6.43 percent.
The percentage of borrowers refinancing into shorter term 15-year mortgages decreased to 11 percent in June. 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.