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Snapshot: How GSE Programs Have Helped Homeowners Since 2008

The Federal Housing Finance Agency (FHFA) has announced that its 2022 Foreclosure Prevention and Refinance Report found that Fannie Mae and Freddie Mac (the GSEs) successfully diverted 96,945 homeowners from foreclosure during the second quarter, raising the number of homeowners it has helped since they entered into conservatorship in 2008 to 6.59 million. 

Of these actions, 5.88 million have helped troubled homeowners stay in their homes; this number includes 2.58 million permanent loan modifications. 

In addition, even in light of rising mortgage rates, 72% of loan modifications during the second quarter still reduced borrowers’ monthly payments by at least 20%. The number of refinances decreased from 899,518 in the first quarter to 444,852 in the second quarter. 

All-in-all, through various channels the GSEs serious delinquency rate declined from 0.97% to 0.79% through the end of the second quarter. Comparatively, the FHA loans had a delinquency rate of 4.64%, Veteran Affairs loans were 2.83%, and all loans clocked in at 2.12% 

GSE foreclosure starts declined 6% to 19,388, while third-party foreclosure sales increased 3% to 3,485 in the second quarter. 

Other highlights from the report include: 

  • Real Estate Owned (REO) Activity & Inventory: The Enterprises’ REO inventory increased 3 percent from 9,048 in the first quarter to 9,341 in the second quarter of 2022, as REO acquisitions outpaced property dispositions. The total number of property acquisitions increased 3 percent to 1,523, while dispositions decreased slightly to 1,239 during the quarter. 
  • Forbearance: As of June 30, 2022, there were 90,889 loans in forbearance, representing approximately 0.29 percent of the Enterprises single-family conventional book of business, down from 126,758 or 0.41 percent at the end of the first quarter of 2022. About 9 percent of these loans have been on the plan for more than 12 months. 
  • Mortgage Performance: The 60+ days delinquency rate dropped from 1.11 percent at the end of the first quarter to 0.92 percent at the end of the second quarter of 2022. The delinquency rates remained higher than pre-coronavirus rates due to the forbearance programs offered to borrowers affected by the pandemic. 
  • Foreclosures: The number of foreclosure starts decreased to 19,388 while third-party and foreclosure sales increased 13 percent to 3,458 in the second quarter. 

Click here to view the source report in its entirety. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected]

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