FHFA: Foreclosure Prevention Report – October 2019

FHFA: Foreclosure Prevention Report – October 2019

Investor Update
February 3, 2020

Source: FHFA

October 2019 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 9,082 foreclosure prevention actions in October, bringing the total to 4,390,118 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.

• There were 5,801 permanent loan modifications in October, bringing the total to 2,379,758 since the conservatorships began in September 2008.

• Twenty-six percent of modifications in October were modifications with principal forbearance. Modifications with extend-term only accounted for 67 percent of all loan modifications during the month.

• There were 508 short sales and deeds-in-lieu of foreclosure completed in October, up 17 percent compared with September.

The Enterprises’ Mortgage Performance:

• The serious delinquency rate remained unchanged at 0.65 percent at the end of October from September.

The Enterprises’ Foreclosures:

• Third-party and foreclosure sales increased 5 percent from 3,021 in September to 3,174 in October.

• Foreclosure starts decreased from 10,975 in September to 9,678 in October.

October 2019 Highlights — Refinance Activities

• Total refinance volume increased in October 2019 as mortgage rates fell in previous months to lows last observed in 2015. Mortgage rates increased in October: the average interest rate on a 30-year fixed rate mortgage rose to 3.69 percent from 3.61 percent in September.

• In October 2019, the percentage of cashout refinances decreased to 38 percent as mortgage rates fell in previous months, creating more opportunities for non cashout borrowers to refinance at lower rates and lower their monthly payments.

• In October 2019, 2 refinances were completed through the High LTV Refinance Option, bringing total refinances through the High LTV Refinance Option from the inception of the program to 4.