19 Aug FHFA: Foreclosure Prevention Report – May 2021
August 12, 2021
May 2021 Highlights — Foreclosure Prevention
The Enterprises’ Foreclosure Prevention Actions:
• The Enterprises completed 65,243 foreclosure prevention actions in May, bringing the total to 5,965,347 since the start of the conservatorships in September 2008. Approximately 41 percent of these actions have been permanent loan modifications.
• There were 4,689 permanent loan modifications in May, bringing the total to 2,462,360 since the conservatorships began in September 2008.
• Thirteen percent of modifications in May were modifications with principal forbearance. Modifications with extend-term only accounted for 63 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 25 percent from 55,970 in April to 41,832 in May.
• Initiated forbearance plans decreased 2 percent from 28,623 in April to 28,128 in May. The total number of loans in forbearance also decreased from 592,985 at the end of April to 540,421 at the end of May, representing approximately 1.8% of the total loans serviced, and 59 percent of the total delinquent loans.
The Enterprises’ Mortgage Performance:
• The 30-59 days delinquency rate increased to 0.78 percent, while the serious delinquency rate decreased to 2.15 percent at the end of May.
The Enterprises’ Foreclosures:
• Third-party and foreclosure sales decreased 12 percent to 714 while foreclosure starts increased 9 percent to 2,206 in May.
May 2021 Highlights — Refinance Activities
• Total refinance volume decreased in May 2021, after mortgage rates rose above 3 percent in March and April. Mortgage rates fell in May: the average interest rate on a 30-year fixed rate mortgage fell to 2.96 percent from 3.06 perent in April.
• In May, 3 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 193.
• The percentage of borrowers refinancing into shorter term 15-year fixed rate mortgages increased to 28 percent in May as the difference between 15- and 30- year fixed rate mortgages steadily increased from the lows observed in late 2020 of 46 basis points to 70 basis points in April.