25 Jun FHFA: Foreclosure Prevention Report – First Quarter 2020
June 23, 2020
1Q20 Highlights — Foreclosure Prevention
The Enterprises’ Foreclosure Prevention Actions:
• The Enterprises completed 26,910 foreclosure prevention actions in the first quarter, bringing the total to 4,433,876 since the start of conservatorships in September 2008. Of these actions, 3,735,202 have helped troubled homeowners stay in their homes, including 2,406,855 permanent loan modifications.
• Initiated forbearance plans rose to 170,533 in the first quarter of 2020 from 6,975 in the fourth quarter of 2019.
• Twenty-three percent of modifications in the first quarter were modifications with principal forbearance. Modifications with extend-term only accounted for 64 percent of all loan modifications during the quarter.
• There were 1,148 completed short sales and deeds-in-lieu during the quarter, bringing the total to 698,674 since the conservatorships began in September 2008.
The Enterprises’ Mortgage Performance:
• The percentage of 60+ days delinquent loans dropped from 0.96 percent at the end of the fourth quarter of 2019 to 0.92 percent at the end of the first quarter of 2020.
• The Enterprises’ serious (90 days or more) delinquency rate decreased to 0.64 percent at the end of the first quarter. This compared with 3.29 percent for Federal Housing Administration (FHA) loans, 1.80 percent for Veterans Affairs (VA) loans, and 1.67 percent for all loans (industry average).
The Enterprises’ Foreclosures:
• Foreclosure starts decreased to 3 percent to 28,978 while third-party and foreclosure sales decreased 9 percent to 7,704 in the first quarter.
For an interactive online map that provides state data, click on the following link:
1Q20 Highlights — Refinance Activities
• Total refinance volume increased in March 2020 as mortgage rates continued to plumb the lows last observed in 2015. Mortgage rates increased in March: the average interest rate on a 30-year fixed rate mortgage rose to 3.45 percent from 3.47 percent in February.
• In the first quarter of 2020, 8 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 19.
• The percentage of cash-out refinances increased to 36 percent in March. Mortgage rates have fallen from the highs observed a year ago to lows last observed in 2015, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.