FHFA: Foreclosure Prevention Report – February 2021

FHFA: Foreclosure Prevention Report – February 2021

Investor Update
May 13, 2021

Source: FHFA

February 2021 Highlights — Foreclosure Prevention

 

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 60,661 foreclosure prevention actions in February, bringing the total to 5,720,846 since the start of the conservatorships in September 2008. Approximately 43 percent of these actions have been permanent loan modifications.

• There were 3,334 permanent loan modifications in February, bringing the total to 2,447,531 since the conservatorships began in September 2008.

• Ten percent of modifications in February were modifications with principal forbearance.  Modifications with extend-term only accounted for 66 percent of all loan modifications during the month.

• The number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan decreased from 38,976 in January to 35,468 in February.

• Initiated forbearance plans decreased 17 percent from 47,866 in January to 39,825 in February. The total number of loans in forbearance plan also decreased from 771,369 at the end of January to 738,925 at the end of February, representing approximately 2.5% of the total loans serviced, and 63 percent of the total delinquent loans.

• There were 219 short sales and deeds-in-lieu of foreclosure completed in February, down 6 percent compared with January.

The Enterprises’ Mortgage Performance: 

• The 30-59 days delinquency rate increased to 1.06 percent, while the serious delinquency rate decreased from 2.70 percent at the end of January to 2.66 percent at the end of February.

The Enterprises’ Foreclosures:

• Third-party and foreclosure sales increased slightly to 625 while foreclosure starts decreased 16 percent to 1,743 in February.

February 2021 Highlights ​— Refinance Activities​​

• Total refinance volume fell in February 2021 amid a rise from historic low mortgage rates in January. Mortgage rates increased in February: the average interest rate on a 30-year fixed rate mortgage rose to 2.81 percent from 2.74 percent in January.

• In February, 6 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 156.

• The percentage of cash-out refinances continued at 27 percent in February, remaining below the levels observed in the previous few years. Historic low mortgage rates have created more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments