FHFA: Foreclosure Prevention Report – November 2020

Investor Update
February 12, 2021

Source: FHFA

November 2020 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 107,609 foreclosure prevention actions in November, bringing the total to 5,499,159 since the start of the conservatorships in September 2008. Approximately 44 percent of these actions have been permanent loan modifications.

• There were 2,624 permanent loan modifications in November, bringing the total to 2,437,133 since the conservatorships began in September 2008.

• Fourteen percent of modifications in November were modifications with principal forbearance. Modifications with extend-term only accounted for 68 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 83,404 in October to 57,133 in November.

• Initiated forbearance plans increased slightly from 58,516 in October to 59,203 in November. The total number of loans in forbearance plans decreased from 922,589 at the end of October to 841,977 at the end of November, representing approximately 2.90% of the total loans serviced, and 69 percent of the total delinquent loans.

• There were 239 short sales and deeds-in-lieu of foreclosure completed in November, down 24 percent compared with October.

The Enterprises’ Mortgage Performance:

• The 30-59 days delinquency rate increased slightly to 1.02 percent, while the serious delinquency rate dropped from 2.99 percent at the end of October to 2.88 percent at the end of November.

The Enterprises’ Foreclosures:

• Third-party and foreclosure sales decreased 19 percent to 602 while foreclosure starts decreased 38 percent to 1,540 in November.

November 2020 Highlights – Refinance Activities

• Total refinance volume rose and continued in record breaking territory in November 2020 as mortgage rates continued to decrease through October. Mortgage rates decreased further in November: the average interest rate on a 30-year fixed rate mortgage fell to 2.77 percent from 2.83 percent in October.

• In November, 19 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 126.

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

Attachments:

Foreclosure Prevention, Refi, and FPM – November 2020