FHFA: Foreclosure Prevention Report – July 2020
October 15, 2020
The Enterprises’ Foreclosure Prevention Actions:
• The Enterprises completed 230,198 foreclosure prevention actions in July, bringing the total to 4,916,088 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
• There were 4,481 permanent loan modifications in July, bringing the total to 2,425,327 since the conservatorships began in September 2008.
• Eighteen percent of modifications in July were modifications with principal forbearance. Modifications with extend-term only accounted for 66 percent of all loan modifications during the month.
• Beginning in July, the Enterprises offered payment deferrals to 108,492 borrowers who have completed a COVID-19 related forbearance plan, or who have a confirmed but resolved COVID-19 financial hardship.
• Initiated forbearance plans dropped 31 percent from 129,855 in June to 88,989 in July. The total number of loans in forbearance plans decreased from 1,398,250 at the end of June to 1,263,98 at the end of July, representing approximately 4.46% of the total loans serviced, and 89 percent of the total delinquent loans.
• There were 321 short sales and deeds-in-lieu of foreclosure completed in July, up 4 percent compared with June.
The Enterprises’ Mortgage Performance:
• The 30-59 days delinquency rate dropped to 1.12 percent, while the serious delinquency rate increased from 2.58 percent at the end of June to 3.19 percent at the end of July. The increase in the serious delinquency rate was as a result of the COVID-19 pandemic and the forbearance programs being offered to affected borrowers.
The Enterprises’ Foreclosures:
• Third-party and foreclosure sales increased to 629 in July while foreclosure starts increased slightly to 2,017 in July.
July 2020 Highlights — Refinance Activities
• Total refinance volume increased in July 2020 to levels last observed in 2009 as mortgage rates fell in previous months. Mortgage rates decreased further in July: the average interest rate on a 30-year fixed rate mortgage fell to 3.02 percent from 3.16 percent in June.
• In July, 13 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 83.
• The percentage of cash-out refinances decreased to 25 percent in July from 27 percent in June. Mortgage rates have continued to fall, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.