Foreclosure Prevention, Refinance, and Federal Property Manager’s Report – May 2026
Industry Update
August 20, 2026
Source: Federal Housing Finance Agency
The Enterprises completed 15,855 foreclosure prevention actions in May 2026, bringing the total to 7,410,301 since the start of the conservatorships in September 2008. Approximately 38.7 percent of these actions have been permanent loan modifications.
There were 6,616 permanent loan modifications in May 2026, bringing the total to 2,864,357 since the conservatorships began in September 2008.
Approximately 35.3 percent of loan modifications in May involved extend term only. Modifications with principal forbearance accounted for 63.1 percent of all loan modifications during the month.
The number of borrowers who received payment deferrals after completing a forbearance plan declined from 5,729 in April to 5,389 in May 2026.
Initiated forbearance plans fell from 9,395 in April to 8,854 in May 2026. However, the number of loans in forbearance increased slightly from 37,517 at the end of April to 37,644 at the end of May, representing approximately 0.12 percent of the total loans serviced and 6.72 percent of the total delinquent loans.
The Enterprises’ Mortgage Performance:
The 30–59‑day delinquency rate increased to 1.03 percent, while the serious delinquency rate held steady at 0.58 percent at the end of May 2026.
The Enterprises’ Foreclosures:
Third‑party and foreclosure sales fell 11.9 percent to 1,167, while foreclosure starts slipped 2.3 percent to 7,979 in May 2026.
May 2026 Highlights – Refinance Activities
Total refinance volume decreased in May 2026 as mortgage rates moved higher. During the month, the average 30‑year fixed mortgage rate rose to 6.44 percent, compared with 6.33 percent in April.
The share of cash‑out refinance transactions increased to 43.0 percent of total refinance activity in May 2026, though it remains well below the peak of 82.4 percent reached in September 2022.
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