February 2025 Highlights - Foreclosure Prevention
The Enterprises' Foreclosure Prevention Actions:
- The Enterprises completed 20,677 foreclosure prevention actions in February 2025, bringing the total to 7,139,579 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
- There were 5,459 permanent loan modifications in February 2025, bringing the total to 2,757,991 since the conservatorships began in September 2008.
- Approximately 69 percent of loan modifications in February involved extend term only. Modifications with principal forbearance accounted for 30 percent of all loan modifications during the month.
- The number of borrowers who received payment deferrals after completing a forbearance plan increased from 8,844 in January to 9,739 in February 2025.
- Initiated forbearance plans decreased from 12,581 in January to 10,135 in February 2025. The total number of loans in forbearance also decreased from 48,153 at the end of January to 44,186 at the end of February 2025, representing approximately 0.14 percent of the total loans serviced and 7.9 percent of the total delinquent loans.
The Enterprises' Mortgage Performance:
- The 30-59-day delinquency rate increased to 1.00 percent while the serious delinquency rate remained stable at 0.59 percent at the end of February 2025.
The Enterprises' Foreclosures:
- Third-party and foreclosure sales fell 6 percent to 980 while foreclosure starts dropped 22 percent to 6,375 in February 2025.
February 2025 Highlights - Refinance Activities
- Total refinance volume decreased in February 2025 as mortgage rates increased from December 2024 to January 2025. Mortgage rates fell in February: the average interest rate on a 30-year fixed rate mortgage decreased from 6.96 percent in January to 6.84 percent in February 2025.
- The percentage of cash-out refinances increased from 58 percent in January to 62 percent in February after rising as high as 82 percent over the last three years. Higher mortgage rates have reduced the opportunities for non-cash-out borrowers to refinance at lower rates and lower their monthly payments.