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GSEs Report 4.42M Preventive Actions Since Conservatorship

The Federal Housing Financing Agency (FHFA) released its Foreclosure Prevention Refinance and FPM Report covering January 2020 and found that the GSEs posted 9,108 foreclosure preventions for the month. 

The GSEs have prevented 4.42 million foreclosure actions since entering conservatorship in September 2008. 

Regarding these actions, 50% were permanent loan modifications. Specifically, the report noted a total of 5,827 permanent loan modifications during the month of January, causing the total tally to wind up at 2,4 million.

The FHFA report also revealed that January posted numerous modifications with principal forbearance—25% of all modifications. As for extend-term only modifications, these accounted for 64% of all loan modifications in January 2020. Short sales and deeds-in-lieu of foreclosure experienced a slight uptick in January, rising 30% from the previous month (December 2019) to peak at a total of 442 on record.

The GSE’s January 2020 mortgage performance was also showcased in the report, with FHFA revealing a small drop in the serious delinquency rate, lowering from December 2019s 0.65% to 0.64%. Regarding the GSE’s foreclosures, January 2020 saw a 27% rise in third-party and foreclosure sales, from 2,537 in December to 3,225. Also experiencing an uptick were foreclosure starts, which started at 10,670 in December 2019 and rose to 11,624 in January.

The report also highlighted refinancing, revealing that the total refinance volume for January dropped. January saw a decline in mortgage rates, with the average interest rate on a 30-year fixed-rate mortgage lowering to 3.62%, down from December 2019s rate of 3.72%.

FHFA also shared that a total of four refinances went through during this period via the High LTV Refinance Option program. After including these recent additions, the report revealed that total refinances made possible thanks to this High LTV Refinance Option brought the current tally to 15 altogether since the program first began. As for the cash-out refinances of January 2020, the percentage stayed steady at 42%, a mark that is lower than the peak that was seen in the latter part of 2018.

About Author: Andy Beth Miller

Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad.
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