FHFA: Foreclosure Prevention Report – October 2020

FHFA: Foreclosure Prevention Report – October 2020

Investor Update
January 27, 2021

Source: FHFA

October 2020 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 166,189 foreclosure prevention actions in October, bringing the total to 5,391,530 since the start of the conservatorships in September 2008. Approximately 45 percent of these actions have been permanent loan modifications.

• There were 2,890 permanent loan modifications in October, bringing the total to 2,434,509 since the conservatorships began in September 2008.

• Eighteen percent of modifications in October were modifications with principal forbearance. Modifications with extend-term only accounted for 65 percent of all loan modifications during the month.

• The number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan increased from 72,589 in September to 83,384 in October.

• Initiated forbearance plans decreased 9 percent from 64,179 in September to 58,516 in October. The total number of loans in forbearance plans decreased from 1,045,808 at the end of September to 922,589 at the end of October, representing approximately 3.22% of the total loans serviced, and 74 percent of the total delinquent loans.

• There were 315 short sales and deeds-in-lieu of foreclosure completed in October, up 7 percent compared with September.

The Enterprises’ Mortgage Performance: 

• The 30-59 days delinquency rate decreased to 1.01 percent, while the serious delinquency rate dropped from 3.14 percent at the end of September to 2.99 percent at the end of October.

The Enterprises’ Foreclosures:

• ​Third-party and foreclosure sales increased 19 percent to 741 while foreclosure starts decreased 13 percent to 2,474 in October.

October 2020 Highlights – Refinance Activities

• Total refinance volume rose and continued in record breaking territory in October 2020 as mortgage rates continued to decrease though September. Mortgage rates decreased further in October: the average interest rate on a 30-year fixed rate mortgage fell to 2.83 percent from 2.89 percent in September.

• In October, 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 107.

• The percentage of cash-out refinances increased to 26 percent in October after steadily decreasing in earlier months to a low of 25 percent in August, and rising slightly in September. Mortgage rates have continued to fall, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.