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FHFA Releases Mortgage Relief Data for July

Since 2008, when they entered FHFA conservatorship [1], Fannie Mae and Freddie Mac have completed a total of 4,916,088 foreclosure prevention actions. The FHFA this week published its latest numbers, which show that:

The two GSEs completed 230,198 foreclosure prevention actions in July. Close to half of these actions are permanent loan modifications, FHFA reported.

They undertook 4,481 permanent loan modifications in July; 18% of modifications in July were modifications with principal forbearance. Modifications with extend-term only accounted for 66% of loan modifications during the month.

Starting in July, Fannie and Freddie offered payment deferrals to 108,492 borrowers who finished a COVID-19 related forbearance plan, or who have "a confirmed but resolved COVID-19 financial hardship."

Forbearance plan initiation dropped 31% from 129,855 in June to 88,989 in July. The total number of loans in forbearance plans decreased from 1,398,250 at the end of June to 1,263,98 at the end of July, representing approximately 4.46% of the total loans serviced, and 89% of the total delinquent loans, the FHFA reported.

The GSEs reported 321 short sales and deeds-in-lieu of foreclosure completed in July—that is up 4% since June.

Broken down, mortgage loan performances showed a drop of 1.12% in the 30-59 days delinquency rate; serious delinquency rate increased from 2.58% at the end of June to 3.19% at the end of July. "The increase in the serious delinquency rate was as a result of the COVID-19 pandemic and the forbearance programs being offered to affected borrowers," FHFA reported.

Third-party and foreclosure sales increased to 629 in July while foreclosure starts increased slightly to 2,017 in July.

As for July's refinance activity, the total volume increased to levels last observed in 2009 as mortgage rates fell in previous months. Mortgage rates decreased further in July: the average interest rate on a 30-year fixed rate mortgage fell to 3.02% from 3.16% in June; 13 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 83; and The percentage of cash-out refinances decreased to 25 percent in July from 27 percent in June. "Mortgage rates have continued to fall, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments," the FHFA reported.

View the entire report complete with charts, graphics, and methodology, here [2].