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GSEs Executed Nearly 25K in Foreclosure Prevention Actions in August

The Federal Housing Finance Agency (FHFA) has issued its latest Foreclosure Prevention, Refinance, and Federal Property Manager's Report, covering the month of August 2022, which found that combined, Fannie Mae and Freddie Mac completed 24,603 foreclosure prevention actions in August, bringing the total number of actions to 6,639,479 since the start of the conservatorships in September of 2008. Approximately 39% of these foreclosure prevention actions have resulted in permanent loan modifications.

The FHFA reported that there were 9,090 permanent loan modifications in August, bringing the total to 2,601,031 since the conservatorship of the government-sponsored enterprises (GSEs) began in September 2008.

The total number of loans in forbearance plans continued to trend downward since its peak in May 2020, but remained elevated through August 2022 compared to pre-pandemic levels. As of August 31, 2022, there were 80,494 loans in forbearance, representing approximately 0.26% of the GSE’s single-family conventional book of business, down from 84,385 or 0.27% at the end of July. Approximately 6% of these loans have been in forbearance for more than 12 months.

Nearly 58% of the loan modifications reported in August 2022 include "Reduce Rate" and "Extend-Term.” Modifications with principal forbearance accounted for 11% of all loan modifications during the month. The number of borrowers who received payment deferrals after completing a COVID-19-related forbearance plan rose 2% from 10,631 reported in July to 10,856 in August.

Forbearance plans that were initiated in August increased from 13,453 in July to 14,664 in August 2022. The total number of loans in forbearance decreased from 84,385 at the end of July to 80,494 at the end of August, representing approximately 0.26% of the total loans serviced, and 16% of the total delinquent loans.

Also in August, the 30-59 day delinquency rate decreased to 0.76%, while the serious delinquency rate declined to 0.71% at the end of August. Third-party and foreclosure sales decreased slightly to 1,165 while foreclosure starts increased 15% to 6,248 in August 2022.

 

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.
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