FHFA: Foreclosure Prevention Report – Fourth Quarter 2019
March 24, 2020
4Q19 Highlights — Foreclosure Prevention
The Enterprises’ Foreclosure Prevention Actions:
• The Enterprises completed 25,930 foreclosure prevention actions in the fourth quarter, bringing the total to 4,406,966 since the start of conservatorships in September 2008. Of these actions, 3,709,440 have helped troubled homeowners stay in their homes, including 2,390,082 permanent loan modifications.
• Twenty-six percent of modifications in the fourth quarter were modifications with principal forbearance. Modifications with extend-term only accounted for 65 percent of all loan modifications during the quarter.
• There were 1,272 completed short sales and deeds-in-lieu during the quarter, bringing the total to 697,526 since the conservatorships began in September 2008.
The Enterprises’ Mortgage Performance:
• The percentage of 60+ days delinquent loans remained unchanged at 0.96 percent at the end of the fourth quarter from third quarter of 2019.
• The Enterprises’ serious (90 days or more) delinquency rate remained unchanged at 0.65 percent at the end of the fourth quarter. This compared with 3.47 percent for Federal Housing Administration (FHA) loans, 1.92 percent for Veterans Affairs (VA) loans, and 1.76 percent for all loans (industry average).
The Enterprises’ Foreclosures:
• Foreclosure starts increased slightly to 30,010 while third-party and foreclosure sales decreased 12 percent to 8,474 in the fourth quarter.
For an interactive online map that provides state data, click on the following link:
4Q19 Highlights — Refinance Activities
• Total refinance volume increased in December 2019 as mortgage rates rose in previous months but remained near lows last observed in 2015. Mortgage rates increased in December: the average interest rate on a 30-year fixed rate mortgage rose to 3.72 percent from 3.70 percent in November.
• In the fourth quarter of 2019, 9 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 11.
• The percentage of cash-out refinances increased to 42 percent in December but remained well below the peak observed in late 2018. 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.