Industry Update
September 24, 2024
Source: Federal Housing Finance Agency
The Federal Housing Finance Agency (FHFA) released its second quarter 2024 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 46,378 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 7,004,262 since the start of conservatorships in September 2008.
The report also shows that 32 percent of loan modifications completed in the second quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances increased from 69,877 in the first quarter of 2024 to 89,571 in the second quarter of 2024.
The Enterprises’ serious delinquency rate declined slightly from 0.51 percent at the end of the first quarter to 0.49 percent at the end of the second quarter. This compares with 3.17 percent for Federal Housing Administration (FHA) loans, 2.07 percent for Veterans Affairs (VA) loans, and 1.43 percent for all loans (industry average).
Other highlights from the report include:
Forbearance: At the end of the quarter, there were 31,827 loans in forbearance, representing approximately 0.10 percent of the Enterprises’ single-family conventional book of business, down from 34,348 or 0.11 percent at the end of the first quarter of 2024. Approximately 1 percent of these loans have been on a forbearance plan for more than 12 months.
Mortgage Performance: The 60+ day delinquency rate remained unchanged at 0.70 percent at the end of the second quarter of 2024 compared to the end of the first quarter of 2024.
Foreclosures: The number of foreclosure starts fell 7.0 percent to 17,339 while third-party and foreclosure sales declined 7.4 percent to 2,944 in the second quarter.
Real Estate Owned (REO) Activity & Inventory: The Enterprises’ REO inventory decreased 9.2 percent from 10,404 in the first quarter of 2024 to 9,450 in the second quarter of 2024, as property dispositions outpaced acquisitions. The total number of property acquisitions decreased 14.2 percent to 1,200, while dispositions rose to 2,105 during the quarter.
FHFA’s quarterly foreclosure prevention and refinance reports include data on the Enterprises’ mortgage performance, delinquencies, and active forbearance plans, as well as forfeiture actions and refinances by state. The data included in these reports are also available on FHFA’s website as an interactive Borrower Assistance Map.
For full report, please click the source link above.
