4Q24 Highlights — Foreclosure Prevention
The Enterprises' Foreclosure Prevention Actions:
- The Enterprises completed 50,741 foreclosure prevention actions in the fourth quarter of 2024, bringing the total to 7,098,462 since the start of conservatorships in September 2008. Of these actions, 6,392,882 have helped troubled homeowners stay in their homes, including 2,746,932 permanent loan modifications.
- Initiated forbearance plans rose to 46,902 in the fourth quarter from 30,938 in the third quarter of 2024. The total number of loans in forbearance at the end of the quarter was 50,873, representing approximately 0.16 percent of the total loans serviced and 8.8 percent of the total delinquent loans.
- Twenty six percent of modifications in the fourth quarter of 2024 were modifications with principal forbearance. Modifications that include extend-term only accounted for 73 percent of all loan modifications during the quarter.
- There were 170 completed short sales and deeds-in-lieu during the quarter, bringing the total to 705,580 since the conservatorships began in September 2008.
The Enterprises' Mortgage Performance:
- The 60+ days delinquency rate increased from 0.75 percent at the end of the third quarter to 0.83 percent at the end of the fourth quarter of 2024.
- The Enterprises' serious (90 days or more) delinquency rate increased to 0.57 percent at the end of the fourth quarter of 2024. This compared with 4.12 percent for Federal Housing Administration (FHA) loans, 2.58 percent for Veterans Affairs (VA) loans, and 1.68 percent for all loans (industry average).
The Enterprises' Foreclosures:
- Foreclosure starts declined 4.9 percent to 20,942 while third-party and foreclosure sales also decreased 4.6 percent to 2,898 in the fourth quarter of 2024.
For an interactive online map that provides state data, click on the following link:
Fannie Mae and Freddie Mac State Borrower Assistance Map
4Q24 Highlights — Refinance Activities
- Total refinance volume increased in the fourth quarter of 2024 as monthly mortgage rates at the end of the third quarter dipped to levels last observed in the third quarter of 2022. The average interest rate on a 30-year fixed rate increased from 6.18 percent at the end of the third quarter to 6.72 percent at the end of the fourth quarter.
- The percentage of cash-out refinances decreased from 60 percent in the third quarter to 55 percent in the fourth quarter after rising as high as 82 percent over the last three years. In October and November, the percentage of cash-out refinances decreased to 48 percent and 44 percent, respectively, as non-cash-out borrowers took advantage of a decrease in rates over the previous months.